Survival Technologies Pvt. Ltd. Vs DCIT (Bombay High Court)
The Hon’ble Bombay High Court in Survival Technologies Pvt. Ltd. v. the Deputy Commissioner of Income Tax [Writ Petition No. 3035 of 2022 dated February 20, 2023] has set aside the notice issued under Section 148 of the Income Tax Act (“the IT Act”) seeking to reopen the assessment of the assessee and the consequential order rejecting the objections of the assessee for reopening such assessment proceedings, on the grounds that the
Facts:
Survival Technologies Pvt. Ltd. (“the Petitioner”) filed its return of income for the Assessment Year (“A.Y.”) 2015-16 which was subsequently selected for scrutiny assessment and notices were issued under Section 143(2) of the IT Act on March 17, 2016 and under Section 142(1) of the IT Act on January 23, 2017 by the Revenue Department (“the Respondent”). The Petitioner furnished necessary information and details pursuant to such notices including its claim for deduction under Section 35(2AB) of the IT Act.
Subsequently, an order of assessment dated June 13, 2017 was passed under Section 143(3) of the IT Act, assessing the total income at INR 8,48,00,190/-, by disallowing INR 32,70,724/- being excess deduction claimed under Section 35(2AB) of the IT Act. However, the disallowance was reduced to INR 16,35,262/- as per rectification order dated June 23, 2017 passed under Section 154 of the IT Act.
Thereafter, a Notice dated March 30, 2021 (“the Impugned Notice”) was issued under Section 148 of the IT Act seeking to reopen assessment for the A.Y. 2015-16 on the ground that income chargeable to tax had escaped assessment. The Petitioner objected such proposed reopening of assessment but the objections were rejected vide Order dated February 21, 2022 (“the Impugned Order”).
Being aggrieved, this petition has been filed.
Issue:
Whether the reassessment proceedings could be initiated on account of change of opinion, after the expiry of period of four years unless any income chargeable to tax has escaped assessment?
Held:
The Hon’ble Bombay High Court in Writ Petition No. 3035 of 2022 held as under:
