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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, PRANAV TRIVEDI
Raama Enterprises, Raama Shikar – Appellant
Versus
Assistant Commissioner Of Income Tax, Circle 1(1)(1), Vadodara – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
Heard learned advocate Mr. Hardik Vora for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule on behalf of the respondent.
3. Having regard to the controversy arising in this petition which is in a narrow compass, with the consent of the learned advocates for the parties, the same is taken up for hearing.
4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 29.03.2022 issued under Section 148A of the INCOME TAX ACT , 1961 (For short “the Act”) for reopening the Assessment Year 2018-19.
5. The brief facts of the case are as under :-
5.1. The petitioner is a partnership firm engaged in business of construction of residential flats and has filed Return of Income for Assessment Year 2018-19 on 30.08.2018 declaring total income at Rs.99,56,280/-. It is the case of the petitioner that during the pendency of the assessment proceedings, in the case of M/s. Ambe Enterprise, M/s. Aakar Enterprise and M/s. Rama Enterprises for the Assessment Year 2016-17,
The opinion of the DVO alone cannot justify reopening an assessment under the Income Tax Act; independent verification is essential.
The jurisdiction to re-open an assessment under the Income Tax Act requires tangible material indicating income has escaped assessment, and cannot be based solely on a change of opinion.
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.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Reopening of assessment under the Income Tax Act requires an allegation of failure to disclose material facts; without this, jurisdiction is lacking.
The Assessing Officer must establish the jurisdictional requirement for reopening and cannot rely solely on information without verifying if the issue had been disclosed during the original assessmen....
Reopening of assessment under Section 147 of the Income Tax Act is impermissible if based solely on a change of opinion without new evidence.
The court emphasized the need for tangible material to believe that income had escaped assessment and held that the power to grant approval for re-opening an assessment is coupled with a duty and can....
The reopening of tax assessment based on previously considered issues constitutes a change of opinion and is fundamentally invalid without new, tangible evidence.
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