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BHARGAV D. KARIA, D. N. RAY
Meghmani Organics Limited – Appellant
Versus
Deputy Commissioner Of Income Tax, Circle 2(1)(1), Ahmedabad – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
Heard learned advocate Mr.B.S.Soparkar for the petitioner and learned Senior Standing Counsel Mr.Varun K. Patel with learned advocate Mr.Dev D. Patel for the respondents.
1. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Varun K. Patel waives service of notice of rule for and on behalf of the respondents.
2. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 27th March, 2021 for re-opening of the assessment for the 2014- 15 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the Act’).
3. The brief facts of the case are as under :
3.1. The petitioner filed its original return of income for the Assessment Year 2014- 15 on 28th November, 2014 declaring total income of Rs.3,23,95,810/-. Thereafter the case of the petitioner for the Assessment Year 2014-15 was selected for scrutiny, detailed scrutiny was undertaken and notice under Section 142(1) of the Income Tax Act, 1961 (for short ‘the Act’) dated 26th April, 2016 was issued asking inter-alia specific details relating to disallowance in accordance with Rule 8D read with Section 14A of the Act as well as the depreciati
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
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 court emphasized the need for tangible material to believe that income had escaped assessment and held that the power to grant approval for re-opening an assessment is coupled with a duty and can....
The Court should be guided by the reasons recorded for the reassessment and not by the reasons or explanation given by the Assessing Officer at a later stage in respect of the notice of reassessment.....
It is settled law that, at the stage of Section 148 of the Act, what is required is “reason to believe”, but not the established fact of escapement of income. This aspect has been considered by the A....
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
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.
It is a settled position of law that reopening of case under Section 147 of the act, after expiry of 4 years, cannot be justified unless the income chargeable to tax has escaped assessment by reason ....
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