Creamline Dairy Products Limited Vs PCIT- I (Telangana High Court)
The writ petition challenged the legality of a reassessment initiated under Section 148 of the Income Tax Act, 1961 for Assessment Year 2016–17, along with the approval granted under Section 151 and subsequent notices. The petitioner sought to have these actions declared without jurisdiction, arbitrary, and contrary to law.
The original assessment for the relevant year had been completed on 17.12.2018 after detailed scrutiny, during which the Assessing Officer examined all relevant documents, transactions, and submissions provided by the petitioner. Subsequently, on 30.03.2021, the authorities issued approval under Section 151 and a notice under Section 148 to reopen the assessment. However, the reasons for reopening were communicated only on 11.03.2022, along with a show-cause notice that allowed the petitioner less than four working days to respond.
The petitioner contended that the reassessment was based on a “change of opinion,” as the same issues—such as valuation of shares and disallowance under Section 14A—had already been examined during the original assessment. It was argued that all material facts had been fully and truly disclosed, and no new tangible material had emerged after the original assessment. The petitioner also raised procedural objections, including delay in providing reasons, inadequate time to respond, and failure to furnish approval under Section 151, alleging violation of principles of natural justice.
