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BHARGAV D. KARIA, D. N. RAY
Songwon Specialty Chemicals India Private Limited – Appellant
Versus
Deputy Commissioner Of Income Tax, Circle 2(1)(1) – Respondent
JUDGMENT :
Bhargav D. Karia, J.
1. Heard learned advocate Mr. Dharan Gandhi appearing for learned advocate Mr.Darshan B.Gandhi for the petitioner and learned Senior Standing Counsel Mr.Nikunt K.Raval for the respondents.
2. Having regard to the controversy involved, which is in narrow compass, with the consent of learned advocates for the respective parties, both the matters are taken up for final hearing.
3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Nikunt K.Raval, waives service of notice of rule on behalf of the respondents.
4. Both these petitions are filed under Article 226 of the Constitution of India with a prayer to quash and set aside the notice issued under Section 148A(b) of the Act dated 10th February, 2024 for the Assessment Years 2017-18 and 2018-2019 and the order dated 30th March, 2024 passed under Section 148A(d) of the Act and the consequent notice issued under Section 148 of the Act of the even date.
5. The brief facts of the case are that the respondent-Assessing Officer issued notice under Section 148A(b) of the Act on the basis of the audit objections which reads as under :-
The court ruled that the Assessing Officer's reliance on audit objections without considering prior accepted claims of depreciation constituted non-application of mind, rendering the reassessment not....
The court ruled that the Assessing Officer's notice under Section 148 was invalid as it ignored prior ITAT rulings, establishing no escapement of income for the assessment year in question.
Reopening of assessments under section 148 requires fresh tangible material; reliance on prior records or audit objections alone is insufficient.
Reassessment under Income Tax Act is impermissible on issues already addressed in a completed assessment, as it constitutes a change of opinion without new material evidence.
The Assessing Officer is mandated to dispose of objections to reassessment notices by a speaking order before proceeding with the assessment.
Reopening of assessments under Section 148 requires new tangible material; a mere change of opinion does not suffice.
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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