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BHARGAV D. KARIA, NIRAL R. MEHTA
Nikita Jenishkumar Patel – Appellant
Versus
Income Tax Officer Ward 1(3)(8) – Respondent
JUDGMENT :
Bhargav D. Karia, J.
1. Heard learned advocate Mr. Manish Shah for the petitioner and learned senior standing counsel Mr.Karan Sanghani for the respondent in both the petitions.
1.1 Rule, returnable forthwith. Learned advocate Mr. Karan Sanghani waives service of notice of Rule on behalf of the respondent in both the petitions.
1.2 Having regard to the controversy in narrow compass and with consent of the learned advocates appearing for the parties, the matters are taken up for final consideration.
2. These two petitions are arising out of reopening of assessment in case of sale of immovable property situated at Revenue Survey No.4/A, Block No.10/A, Moje Abrama, Taluka Kamrej, Surat (for short ‘the subject property’) on 06th February, 2012 by six co-owners.
2.1 The petitions, therefore, were heard together and are being disposed of by this common judgment and order.
2.2 For the sake of convenience, Special Civil Application No.22046 of 2019 is treated as a lead matter.
3. The brief facts of the case are as under.
3.1 The petitioners along with other co-owners executed sale deed for value of Rs.01,42,17,840/- of the subject property on 06th February, 2012. Stamp duty of Rs.18,44,7
Reopening of assessments requires tangible evidence of income escapement; mere change of opinion based on previously disclosed facts is insufficient.
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.
The main legal point established in the judgment is that re-assessment based on a change of opinion is impermissible under the Income Tax Act, and tangible material is required to justify re-opening.
The main legal point established in the judgment is the requirement of tangible material and cogent facts for invoking powers under Section 147 of the Income Tax Act, and the importance of the reason....
The power to reopen a completed assessment under Section 147 of the Act 1961 has been bestowed on the Assessing Officer, if he has reason to believe that any income chargeable to tax has escaped asse....
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....
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