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BHARGAV D. KARIA, NIRAL R. MEHTA
Principal Commissioner Of Income Tax-1 – Appellant
Versus
Farmson Pharmaceuticals Gujarat Pvt. Ltd. – Respondent
ORDER :
BHARGAV D. KARIA, J.
1. This appeal is filed under Section 260A of the Income Tax Act, 1961 (for short “the Act”) by the Appellant-Revenue proposing the following substantial questions of law arising out from the order dated 20.10.2023 passed by the Income Tax Appellate Tribunal (for short “the Tribunal”), Ahmedabad in ITA No.1229/Ahd/2017 for the Assessment Year 2008-09.
B. "Whether on facts and circumstances of the case and in law the Ld. Appellate Tribunal was justified in holding reopening u/s 147 of the Act as invalid without appreciating the observations of the Apex Court in the case of TechSpan India (P.) Ltd. [2018] 92 taxmann.com 361 (SC), wherein it has been held that before interfering with proposed re-opening of assessment on ground that same is based only on a chang
Reopening of assessments under Section 147 requires tangible evidence of income escapement, not just a change of opinion.
Section 147 enables the Assessing Officer to assess or reassess any income chargeable to tax which he has reason to believe has escaped assessment for an assessment year.
Reopening under section 147 invalid if based on borrowed satisfaction from investigation wing without AO's independent application of mind demonstrating live link to non-disclosure of material facts,....
Reopening of assessment beyond four years without fresh tangible material or proper disposal of objections is illegal under the Income Tax Act.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
The power to reopen assessments under Section 147 of the IT Act is much wider post-1st April, 1989, but must be based on tangible material and have a live link with the formation of belief.
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.
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