Case Law Details
Usha Eswar Vs Rajeshwari Menon (Bombay High Court)
Bombay High Court held that different view by Authority of Advance Ruling (AAR) in case of another Applicant cannot be ground for reopening of assessment under section 147 of the Income Tax Act.
Facts- Petitioner is challenging the legality and validity of notices issued under Section 148 of the Income Tax Act, 1961 (the ‘Act’) issued by Respondent No.1 for Assessment Years 1997-98, 1998-99, 1999-200 and 2000-2001. It is Petitioner’s case that these notices had been issued without satisfying the jurisdiction condition necessary to make a re-assessment.
Notably, petitioner received notices for A. Y. 1997-98, 1998-99, 1999-2000 and 2000-2001 u/s. 148 of the Act by which Respondent No.1 stated there were reasons to believe that Petitioner’s income for the relevant Assessment Years has escaped assessment and, therefore, it was proposed to re-assess Petitioner’s income and Petitioner was called upon to file his return of income.
It is stated in the reasons that according to Respondent No.1, income has escaped assessment inasmuch as the benefits of the DTAA were wrongly given to Petitioner. Respondent No.1 has noted that the claim was made on the basis of the ruling made by AAR but according to Respondent No.1, ruling was only relevant to A. Y. 1995-96. Respondent No.1 has concluded that the ratio of the subsequent ruling would be applicable in the case of Petitioner and Petitioner would, therefore, not be entitled for the benefits applicable under the provisions of the DTAA. Soon after these notices were received, Petitioner filed this Petition.
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