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DEVENDRA KUMAR UPADHYAYA, SUBHASH VIDYARTHI
Ambuj Foods Pvt. Ltd. Through Director – Appellant
Versus
Principal Commissioner of Income Tax – Respondent
JUDGMENT :
Subhash Vidyarthi, J.
1. Heard Sri Pradeep Agarwal assisted by Sri. Amar Mani Tiwari, Advocate, the learned Counsel for the petitioner and Shri Manish Misra, learned Counsel for the respondents.
2. By means of this Writ Petition filed under Article 226 of the Constitution of India, the petitioner has challenged the validity of a notice dated 31.03.2021 issued by the DCIT Circle Faizabad under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') proposing to assess/reassess the petitioner’s income/loss for the assessment year 2013-14 and directing the petitioner to submit a return for the said assessment year. The petitioner has also challenged the order dated 03-03-2022 passed by the National Faceless Assessment Centre, rejecting the objections filed by the petitioner in response to the aforesaid notice.
3. The petitioner’s case is that, it had filed its return for the Assessment Year 2013-14 on 05-08-2013 declaring a total income of Rs.3,65,440/-, which was processed on 19-05-2014 under Section 143 (1) of the Act. The case was selected for scru
Point of Law : Assessment - Unless any income chargeable to tax has escaped assessment for such assessment year by reason o f the failure on the part of the assesse to disclose fully and truly all ma....
Intimation under section 143(1)(a) was deemed to be a notice of demand under section 156, for the apparent purpose of making machinery provisions relating to recovery of tax applicable. By such appli....
Point of Law : Court satisfied that there was prima facie material available on record before the assessing officer for issuing a notice for reassessment and the notice under Section 148.
The function of the assessing authority at this stage is to administer the statute and what is required is a reason to believe and not to establish fact of escapement of income and therefore, looking....
The main legal point established in the judgment is that the re-opening of a concluded assessment cannot be based on a mere change of opinion by the Assessing Officer, and the duty of the assessee is....
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 main legal point established in the judgment is the requirement for the belief to be based on reasonable grounds and the need for the assessee to disclose fully and truly all material facts neces....
The court reinforced that reassessment cannot occur without tangible evidence linking the belief of income escaping assessment to the material facts disclosed, emphasizing strict adherence to procedu....
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.
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