Back
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, PRANAV TRIVEDI
Chandrakant Jagmohandas Chhatiawala – Appellant
Versus
Assistant Commissioner Of Income Tax, Circle 1(3), Surat – Respondent
| Table of Content |
|---|
| 1. challenges to notice under it act (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. arguments against reassessment notice (Para 8 , 9) |
| 3. change of opinion prohibits reassessment (Para 10) |
| 4. impugned notice quashed and set aside (Para 11) |
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.
2. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 21.07.2022 issued under section 148 of the INCOME TAX ACT , 1961 [for short ‘the Act’] for A.Y. 2016-17.
3. The petitioner is engaged in the business of manufacturing grey cloth under the name and style of M/s. Pratiman Traders- a proprietary concern. The petitioner incurred interest expenses of Rs. 7,08,390/- and Rs. 2,56,715/- against interest income on fixed deposits of Rs. 14,25,294/- and other interest income of Rs. 18,13,321/- respectively.
4. Case of the petitioner was selected for limited scrutiny. By the show-cause notice dated 31.10.2018, petitioner was called upon to show cause as to why various additions proposed
The reopening of tax assessment based on previously considered issues constitutes a change of opinion and is fundamentally invalid without new, tangible evidence.
Section 147 enables the Assessing Officer to assess or reassess any income chargeable to tax which he has reason to believe has escaped assessment for an assessment year.
The Assessing Officer cannot reopen an assessment based solely on previously considered material, as this constitutes a mere change of opinion, which is impermissible under the Income Tax Act.
The concept of change of opinion is an in-built test to check abuse of power by the Assessing Officer. Reassessment proceedings initiated on the basis of a mere change of opinion are invalid and with....
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
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....
Reopening of assessment under Section 148 is invalid if based on materials already available during the original assessment, constituting a mere change of opinion without fresh evidence.
The power to reopen assessments under Section 147 of the IT Act is much wider post-1st April, 1989, but must be based on tangible material and have a live link with the formation of belief.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
