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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JAGMOHAN BANSAL, AMARINDER SINGH GREWAL
Motorola India Pvt. Ltd. – Appellant
Versus
Assistant Commissioner – Respondent
JUDGMENT :
JAGMOHAN BANSAL, J.
1. As common issues are involved in the captioned petitions, with the consent of both sides, the same are hereby disposed of by this common order. For the sake of brevity and convenience, facts are borrowed from CWP-893-2006
2. The petitioner is assailing notice dated 31.03.2005 under Section 148 of Income Tax Act, 1961 (for short ‘1961 Act’) for the Assessment Year (for short ‘AY’) 1999-2000 with respect to reopening of assessment.
3. The Assessing Authority issued notices under Section 147 read with 148 of 1961 Act for reassessment of returned income for the AY 1998- 99, 1999-2000, 2000-01 and 2001-02. The assessee filed return pursuant to notice and demanded reasons for initiating reassessment proceedings. The assessing authority supplied reasons for initiating proceedings for reassessment. The petitioner filed objections to reasons supplied by Assessing Authority. The Assessing Authority rejected objections of the petitioner.
4. This Court issued notice of motion and vide order dated 20.01.2006 permitted the Assessing Authority to proceed with assessment, however, restrained from passing final order. Undisputedly, the Assessing Authority has not passed
The Assessing Officer cannot reopen assessment under Section 147 without new tangible material, and prior conclusions by the Transfer Pricing Officer are binding.
The Assessing Officer must independently believe that income has escaped assessment; acting under dictation from superiors invalidates reassessment proceedings.
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....
A defective return cannot be regarded as an invalid return.
The main legal point established in the judgment is that reassessment proceedings must be based on tangible material and cannot be initiated solely on the basis of a 'change of opinion' without fresh....
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.
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