EIT Services India Pvt. Ltd. Vs DCIT (Karnataka High Court)
Karnataka High Court held that reassessment proceedings cannot be in the nature of review and accordingly, the material as has come to light in the assessment proceedings for the Assessment Year 2008- 2009 cannot be a sufficient ground to resort to reassessment proceedings.
Facts- The petitioner has filed three Writ Petitions before this Court. The petitioner has sought to challenge the re-assessment proceedings initiated pursuant to the notice issued under Section 148 read with Section 147 of the Income Tax Act, 1961.
The petitioner has sought for a declaration that the proceedings initiated by the respondent No.1- Deputy Commissioner of Income Tax (DCIT) u/s. 147 r.w.s. 148 of the I.T. Act, as being barred by limitation and without jurisdiction. The challenge is laid to the notice dated 29.03.2012, u/s. 148 r/w Section 147 of I.T. Act for the Assessment Year 2005-2006 which preceded the order of reassessment. The petitioner has also sought for quashing of the order dated 13.03.2013, which is the order passed by respondent No.1 rejecting the objections filed by the petitioner to the notice under Section 148 of I.T. Act for re-opening of assessment for the year 2005-2006.
Conclusion- It is settled position that reassessment proceedings cannot be in the nature of review and accordingly, the material as has come to light in the assessment proceedings for the Assessment Year 2008- 2009 cannot be a sufficient ground to resort to reassessment proceedings.
Reasons for reopening rests on the satisfaction of the Assessing Officer who has passed an Assessment Order for the Assessment Year 2008-09 which would amount to substitution of the assessment orders of reasons to believe by borrowed satisfaction of the Assessing Officer who has passed an order for the year 2008-09 which is impermissible in law.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
This Order has been divided into the following Sections to facilitate analysis:
