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BHARGAV D. KARIA, MAUNA M. BHATT
Onir Infraspace Private Limited – Appellant
Versus
Income Tax Officer Ward 3(1)(1) – Respondent
JUDGMENT :
(Bhargav D. Karia, J.)
1. Heard learned advocate Mr.B.S.Soparkar for the petitioner and learned Senior Standing Counsel Mr.Karan Sanghani for learned advocate Mrs.Kalpana K. Raval for the respondent.
2. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Karan Sanghani waives service of notice of rule for and on behalf of the respondent.
3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged notice dated 05.03.2024 issued under Section 148A(b) of the Income Tax Act, 1961 (for short ‘the Act’) and order dated 24th March, 2024 passed under Section 148A(d) of the Act and the consequential notice of the same date issued under Section 148 of the Act.
4.1. The brief facts of the case are that the petitioner-company which is incorporated under the provisions of the Companies Act, 2013 on 17.10.2019 filed return of income for Assessment Year 2020-21 declaring total income of Rs.2,58,250/- on 27.11.2020 which was processed under Section 143(1) of the Act on 28th March, 2021 accepting the returned income.
4.2. The respondent issued an impugned notice under Section 148A(b) of the Act on 05.03.2024 requiring the petitioner to furn
The notice issued under Section 148A(b) of the Income Tax Act was invalid due to procedural errors, lacking necessary information on escaped income and failing to follow required inquiry protocols.
Notices under Income Tax provisions must adhere to procedural requirements; failure to properly assess basis for reopening invalidates the notices.
The main legal point established in the judgment is the significance of adhering to the procedure prescribed under Section 148A of the Income Tax Act, 1961 before initiating reassessment proceedings.....
The requirement of prior approval of the specified authority under Section 148A(d) satisfies the condition for issuance of a notice under Section 148 of the Income Tax Act, 1961.
Reopening of income tax assessments requires new information, not merely a change of opinion, to avoid arbitrary exercise of power.
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....
A notice under Section 148 of the Income Tax Act is invalid if issued beyond the limitation period and based on previously available information, constituting a change of opinion.
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