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HIGH COURT OF GUJARAT
Bhargav D. Karia, D.N.Ray
GTPL Hathway Limited – Appellant
Versus
Deputy Commissioner of Income Tax Circle 2(1)(1) – Respondent
| Table of Content |
|---|
| 1. petitioner argues change of opinion (Para 5) |
| 2. assessing officer's jurisdiction questioned (Para 7) |
| 3. no tangible material for re-opening (Para 8 , 9 , 10 , 11 , 12) |
| 4. notice quashed and set aside (Para 13) |
ORDER :
1. Heard learned Senior Advocate Mr. Tushar Hemani with learned Advocate Ms. V.K. Parikh for the petitioner and learned Senior Standing Counsel Mr. Varun K. Patel for the respondents.
3. With the consent of learned advocates for both the sides, the matter is taking up for hearing as the issue of jurisdiction of the respondent is raised for issuance of notice dated 27.03.2021 under section 148 of the Income Tax Act, 1961 (for short ‘the Act’) for re-opening of the assessment for Assessment Year 2017-18.
4.1 The petitioner filed return of income for AY 2017-18 declaring total income of Rs.39,69,64,650/- on 31.10.2017 and thereafter filed revised return of income on 09.02.2019 declaring total income of Rs.83,33,75,590/-.
4.3 The petitioner thereafter was served with the impugned notice dated 27.03.2021 for re-opening of the assessment. The petitioner filed return of income in response to the said impugned notice on 21.04.2021 and requested for reasons recorded
Re-opening of assessment under Section 148 requires tangible material indicating escapement of income; mere change of opinion is insufficient.
Reopening of assessments under section 148 requires fresh tangible material; reliance on prior records or audit objections alone is insufficient.
Reopening of assessments under Section 148 requires new tangible material; a mere change of opinion does not suffice.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Point of Law : Sufficiency of the evidence or material is not open to scrutiny by the Court but the existence of the belief is the sine qua non for a valid exercise of power.
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....
The key legal principle established in the judgment is that the notice for reopening the assessment under Section 148 of the Income-Tax Act, 1961 must be based on fresh tangible material, and reopeni....
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