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BHARGAV D. KARIA, D. N. RAY
J. K. BULLIONS PRIVATE LIMITED – Appellant
Versus
DEPUTY COMMISSIONER OF INCOME TAX, AHMEDABAD – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned Senior Advocate Mr. S.N. Soparkar with learned advocate Mr. B.S. Soparkar for the petitioner and learned Senior Standing Counsel Mr. Varun K. Patel for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule.
3. All these three petitions are preferred to challenge the notice dated 31.03.2021 issued under section 148 of the Income Tax Act, 1961 (for short ‘the Act’) for the Assessment Years 2014-15, 2015-16 and 2016-17 in case of the petitioner assessee.
4. As the facts are common, the same can be summarized as under:
4.2 The respondent-Assessing Officer upon information received from credible sources that the petitioner has deposited cash of Rs. 16.80 Crore during the year 2013-14 in the bank account and on perusal
The Assessing Officer must provide clear, reasoned beliefs for reopening assessments; vague and cryptic reasons do not justify jurisdiction under the Income Tax Act.
Reopening of income tax assessments requires new tangible material; mere change of opinion is insufficient.
Reopening of assessment under section 148 requires valid reasons and cannot be based on mere suspicion or for verification purposes.
The court ruled that an Assessing Officer must demonstrate a tangible basis for believing income has escaped assessment; mere suspicion or lack of evidence does not justify reopening.
Reopening of assessment under section 148 requires new tangible material; reliance on previously considered facts constitutes a change of opinion, which is impermissible.
Reopening of assessment under the Income Tax Act requires fresh tangible information; reliance on previously available data constitutes a change of opinion, which is impermissible.
Reopening of assessment requires tangible material indicating income has escaped assessment; mere change of opinion is insufficient.
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