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BHARGAV D. KARIA, NIRAL R. MEHTA
Infibeam Avenues Limited – Appellant
Versus
Deputy Commissioner Of Income Tax Circle 2(1)(1) – Respondent
ORDER :
NIRAL R. MEHTA, J.
1. By way of this petition under Article 226 of the Constitution of India, the petitioner has sought to challenge the Notice dated 31.3.2021 under Section 148 of the Income- Tax Act, 1961 (for short ‘the Act’) seeking, inter-alia, reopening of the assessment for the Assessment Year 2015- 16.
2. Brief facts of the case are as under :
2.1 The petitioner was engaged in e-commerce, information technology and IT enabled services. During the year under consideration, the petitioner had issued shares at premium at Rs.415/- per share. As a result thereof, in the annual account under the head ‘security’s premium’ which was Rs.1,03,58,75,980/- as on 31.3.2014 increased to Rs.2,28,09,76,200/- as on 31.3.2015. Thus, Rs.1,24,51,00,220/- increased in security’s premium.
2.2 The petitioner filed return of income for the year under consideration on 30.11.2015, declaring total loss at Rs.7,26,11,928/-. The case was selected for scrutiny and thereby, the then Assessing Officer issued notice dated 20.3.2017 under Section 142(1) of the Act. By way of said notice, following information and details were called for :
Reopening of assessment under Section 148 is impermissible if it is based on previously examined issues without new material.
The court established that there must be tangible material justifying the reopening of an assessment, and the assessing officer must have a reason to believe that income had escaped assessment.
Point of Law : Assessment - Unless any income chargeable to tax has escaped assessment for such assessment year by reason o f the failure on the part of the assesse to disclose fully and truly all ma....
Intimation under section 143(1)(a) was deemed to be a notice of demand under section 156, for the apparent purpose of making machinery provisions relating to recovery of tax applicable. By such appli....
Reopening of assessment beyond four years without failure to disclose material facts is invalid; share premium treated as capital receipt not taxable under Section 68 prior to 2013 amendment.
The main legal point established in the judgment is the requirement for the belief to be based on reasonable grounds and the need for the assessee to disclose fully and truly all material facts neces....
The main legal point established is that the Assessing Officer's belief for the reassessment of income under section 148 of the Income Tax Act is based on subjective satisfaction and the existence of....
Reopening of assessment under the Income Tax Act after four years is impermissible without failure to disclose material facts; mere change of opinion does not justify such action.
The function of the assessing authority at this stage is to administer the statute and what is required is a reason to believe and not to establish fact of escapement of income and therefore, looking....
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