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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, PRANAV TRIVEDI
Charu Pankaj Maheshwari – Appellant
Versus
Income Tax Officer, Ward 5(3)(1), Or His Successor – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr.S.N.Divatia for the petitioner and learned Senior Standing Counsel Mr.Varun K. Patel for the respondent.
2. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Varun K. Patel waives service of notice of rule for and on behalf of the respondent.
3. Having regard to the controversy arising in this petition in narrow compass, with the consent of the learned advocates, the same is taken up for hearing.
4. By this petition under Article 226 of the constitution of India, the petitioner has prayed for quashing and setting aside the notice dated 30th March, 2021 issued under Section 148 of the INCOME TAX ACT , 1961 (for short 'the Act') to re-open the assessment for Assessment Year 2017-18 and the order disposing of the objections dated 19th March, 2022.
5. Brief facts of the case are as under :
5.1. The petitioner derives income from House proprietary.
5.2. The respondent issued the notice dated 30th March, 2021 under Section 148 of the Act for the year under consideration recording the following reasons :
"1. Brief details of the assessee :
The assessee Navinchandra Amrutlal Patel, having PAN: ACHPM8194J and the assessee h
The reopening of an assessment under the Income Tax Act requires the Assessing Officer to provide specific reasons linking alleged income escapement to the taxpayer's records, which must not solely r....
Point of law: It is no doubt true that the Court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income Tax Officer on the point as to whethe....
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....
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....
The court held that an Assessing Officer must form an independent opinion based on material on record before reopening an assessment, and cannot solely rely on external information.
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....
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Assessing Officer having arrived at his subjective satisfaction based on additional fresh material placed before him that the petitioner had not fully and truly disclosed all the material facts neces....
The main legal point established is that the Assessing Officer's belief for the reassessment of income under section 148 of the Income Tax Act is based on subjective satisfaction and the existence of....
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