Mark Steels Limited Vs ACIT (Calcutta High Court)
The Calcutta High Court examined a writ petition challenging an order passed under Section 148A(3) of the Income-tax Act, 1961, and the consequential notice issued under Section 148 for the assessment year 2021–22. The challenge was founded on the allegation that the reopening was based on a mere change of opinion, as the issue had already been examined during scrutiny proceedings. The petitioner contended that during the original assessment under Section 143(3), the Assessing Officer had scrutinised alleged cash transactions with the Majee Group relating to coal purchases but ultimately dropped the issue, and therefore could not reopen the assessment on the same material.
The Court noted that scrutiny proceedings had indeed been initiated earlier through a notice under Section 142(1), where the assessee was asked to explain alleged cash payments. The assessee denied any relationship or transactions with the Majee Group. In the assessment order dated 22 December 2022, the Assessing Officer recorded that despite efforts to verify the information, no data or evidence could be gathered to establish any business relationship between the assessee and the Majee Group. On that basis, the issue was dropped due to lack of evidence, not because a conclusive opinion had been formed on the merits.
