IMPORTANT POINT
Reopening of assessment under Section 148 is impermissible if based solely on a change of opinion without new material evidence.

JUDGMENT :

Bhargav D. Karia, J.

1. Heard learned Senior Advocate Mr.Tushar Hemani with learned advocate Ms.Vaibhavi K. Parikh for the petitioner and learned Senior Standing Counsel Mr.Karan Sanghani for learned advocate Mrs.Kalpana K. Raval for the respondent No.1.

2. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Karan Sanghani waives service of notice of rule for and on behalf of the respondent No.1.

3. Having regard to the controversy involved in narrow compass, with the consent of the learned advocates appearing for the parties, the matter is taken up for hearing.

4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 28.03.2021 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the Act’) for Assessment Year 2016-17. The reasons recorded by the Assessing Officer to re-opening the assessment are as under :

“1. Brief details of the assessee :

Assessee filed its return of income for AY 2016-17 on 13.07.2016 declaring total income of Rs.56,54,590/- The case was selected for complete scrutiny under CASS and scrutiny assessment u/s.143(3) dated 30.12.2018 determining total income of Rs.12,13,54,590/- after making the addition of Rs.11,57,00,000/- on account of unsecured loans accepted during the year.

2. Brief details of information collected/ received by the A.O. :

On perusal of the Audit Report in Form 3CD, as per Annexure ‘L’ of clause 24(a), it is seen that the assessee company had accepted unsecured loan during the year from the following parties

3. Analysis of information collected/received :

The assessee company was asked co furnish the following details in respect of unsecured loan acceptéd during the year under consideration:

(i) Relevant ledger account of the loan givers.

(ii) Copies of acknowledgement of ITR and computation of income for the year 2016-17

(iii) Copies of relevant pages of bank statements of the said loan givers.

(iv) Details of relationship if any between the said givers of loans and the assessee.

2.1 However, it is seen that assessee had not complied with the terms of notice during the course of original assessment proceedings. Thus, it indicates that the assessee has no material in its possession to establish the genuineness and creditworthiness of the lenders. Since the assessee company had failed to explain the source of unsecured loan received during the year, the amount. so received as unsecured loan was required to be disallowed and added back to the total income of the assessee company by invoking the provision of section 68 of the Act.

In view of above facts/material available on records and after analyzing the same, I have reason to believe that income of the assessee to the extent of Rs.11,87,79,500/- has escaped assessment for A.Y.2016-17 within the meaning of section 147 of the I.T. Act.”

5.1. The peti