Back
MUNNURI LAXMAN, PUSHPENDRA SINGH BHATI
Multani Tools Company, Loharpura, Nagaur – Appellant
Versus
Union Of India, through the Secretary to the Government of India, Ministry of Finance, Department of Revenue – Respondent
JUDGMENT :
(Munnuri Laxman, J.)
1) The present writ petition has been filed with the following prayers:-
(ii) Hold that the reasons recorded u/s 148 as communicated vide impugned letter dated 26.8.2002 (Annexure-2) are illegal and cannot be sustained in the eyes of the law.
(iii) Restrain the respondents from taking further proceedings in pursuance of the impugned notices u/s 148 (Annexure-1).
(iv) Hold that the initiation of reassessment proceedings for all the assessment years in question, in the case of the petitioner is illegal and/or without jurisdiction.
(v) Any other appropriate relief/reliefs as may be considered just and necessary by the Hon’ble Court in the facts and circumstances of the case to do complete justice to the petitioner.
(vi) The cost of the writ petition may be kindly awarded”
2) The petitioner is a partnership firm and it is a regular assessee with the Income Tax Department. A survey was conducted in the business premises of the petitioner under Section 133 of the Income Tax Act, 1961 (hereinafter referred to as, “the Act”) on 16.10.2001. During the course of survey, n
The court upheld the validity of reassessment proceedings under Section 148 based on found incriminating material, emphasizing the importance of valid grounds for reopening assessments.
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.
A reassessment notice must be based on specific and valid information suggesting income has escaped assessment, and changing the basis for reassessment mid-proceeding is impermissible under the Incom....
Consistency in the reasons provided to the assessee and those existing on the record is crucial in reassessment proceedings under Section 148 of the Income Tax Act, 1961.
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 established that under the amended Section 148A of the Income Tax Act, the requirement to record 'reason to believe' has been replaced with a subjective decision-making process, allowing fo....
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.
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 'reason to believe' for reassessment must be based on tangible material with a direct nexus to the formation of the belief, and reassessment cannot be made on a change of opinion.
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
