Sea Glimpse Investments Pvt. Ltd. Vs DCIT (Bombay High Court)
The petitioner challenged the notice dated 31.03.2019 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2014-15 and the order dated 14.10.2019 rejecting its objections to the reopening. The principal grounds urged were non-application of mind while granting sanction under Section 151 and incorrect facts recorded in the reasons for reopening.
The petitioner submitted that the Assessing Officer could issue a reopening notice only upon having reason to believe that income chargeable to tax had escaped assessment and that such belief must be founded on correct facts. The Court examined the recorded reasons and noted that they referred to approval of the Additional Commissioner of Income Tax but did not mention the date of the approval letter. The Court further noted that the reasons incorrectly recorded that the petitioner had e-filed its return on 27.10.2016, whereas the assessment order itself showed that the return had been filed on 25.11.2014 and that the scrutiny assessment under Section 143(3) had been completed on 27.10.2016. The Court observed that recording the filing of the return and completion of scrutiny assessment on the same date demonstrated non-application of mind by both the Assessing Officer and the sanctioning authority.
