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BHARGAV D. KARIA, D. N. RAY
Om Synergy Spacelink Pvt. Ltd. – Appellant
Versus
National Faceless Assessment Centre, Govt. Of India – Respondent
JUDGMENT :
(Bhargav D. Karia, J.)
1. Heard learned Senior Advocate Mr. Tushar Hemani for learned advocate Ms. Vaibhavi Parikh for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for for learned Senior Standing Counsel Mrs. Kalpana K. Raval for the respondents.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule for the respondent.
3. Having regard to the controversy in narrow compass, with the consent of the learned advocate for the respective parties, the matter is take up for hearing.
4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity and jurisdiction of the notice dated 23.03.2020 issued under section 148 of the Income Tax Act, 1961 [for short ‘the Act’] for the Assessment Year 2013-14.
5. The petitioner filed return of income on 27.09.2013 showing total income of Rs. 2,33,750/- for the year under consideration. The same was taken-up for scrutiny assessment and assessment order under section 143(3) of the Act was passed on 27.01.2016 accepting return of income.
5.1 Thereafter, the notice under section 148 of the Act was issued. The petiti
A notice under Section 148 of the Income Tax Act issued beyond four years without proper examination of material facts is invalid and lacks jurisdiction.
The court established that the reopening of an assessment under section 148 requires a clear nexus with income escapement, which was not present in this case.
The Assessing Officer cannot reopen an assessment based solely on a change of opinion; valid reasons must exist to believe that income has escaped assessment.
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 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.
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....
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