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BHARGAV D. KARIA, NIRAL R. MEHTA
Kiritbhai Parshottambhai Patel – Appellant
Versus
Assistant Commissioner of Income Tax, Circle 1(3) – Respondent
ORDER :
Niral R. Mehta, J.
1. By way of this petition under Article 226 of the Constitution of India, the petitioner has assailed the notice under Section 148 of the Income-Tax Act, 1961 (for short ‘the Act’) dated 31.3.2021 issued by the revenue authorities, by which the authority has sought to reopen assessment for the Assessment Year 2015-16.
2. Brief facts of the case can be stated as under :
2.1 The petitioner along with other co-owners sold the agricultural land situated at village Varnama during the year under consideration for Rs.4,02,00,000/- by way of executing sale deed on 23.5.2014. The share of the petitioner in the sale consideration was Rs.1,39,00,000/-.
2.2 From the aforesaid sale consideration received by the petitioner, following properties were acquired :
Reopening of assessment under Section 148 requires new tangible material; mere change of opinion does not justify reopening.
Taxation – Assessment/Re assessment - Concept of ‘change of opinion’ as an inbuilt test to check abuse of power by AO. It was further observed that AO has power to reopen assessment proceedings, prov....
The Assessing Officer cannot reopen an assessment based solely on a change of opinion; valid reasons must exist to believe that income has escaped assessment.
The court established that reopening assessments requires new material evidence, and Section 50C does not apply to stock in trade, reinforcing the principle against mere changes of opinion.
Reopening of assessment requires tangible material indicating income has escaped assessment; mere change of opinion is insufficient.
Assessee’s objections raised against the reopening proceedings are not acceptable as the case warrants scrutiny on the same lines. Accordingly, the objections so raised are hereby disposed off accord....
Reopening of assessments requires tangible evidence of income escapement; mere change of opinion based on previously disclosed facts is insufficient.
The reassessment based on a mere change of opinion is not a valid ground for reopening an assessment under Section 147 of the I.T. Act. The reasons for reopening an assessment must have a live link w....
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