Konark Life Spaces Vs ACIT (Bombay High Court)
The Hon’ble Bombay High Court in Konark Life Spaces v. Assistant Commissioner of Income -Tax and Ors. [Writ Petition No. 2840 of 2022 dated February 10, 2023] has set aside the notice issued under Section 148 of the Income Tax Act, 1961 (“the IT Act”) for re-opening of the assessment, on the grounds that the Revenue Department had neither sought any new information nor made a reference to new material on record. Held that, a change in opinion that does not satisfy the jurisdictional foundation under Section 147 of the IT Act.
Facts:
Konark Life Spaces (“the Petitioner”) has challenged the notice under Section 148 of the IT Act dated March 30, 2021 (“the Impugned Notice”) issued by the Revenue Department (“the Respondent”) seeking to re-open the assessment for the A.Y. 2015-16 (“Impugned period”) on the ground of omission and non-disclosure of material facts during the assessment of the income for the impugned period.
The Respondent contended that, as the Petitioner had failed to fully and truly disclose all material facts in regard to INR 17,76,08,505/- during the assessment by the Assessing Officer (“AO”) therefore, the reassessment was sought.
The Petitioner argued that the clarification in relation to INR 17,76,08,505/- was submitted during the assessment scrutiny vide communication dated June 5, 2017, August 16, 2017 and December 22, 2017 and the reopening of the assessment was made on the same ground for which the Petitioner has already provided clarification.
Issue:
Whether the Respondent fulfils the test of “reason to believe” for reopening assessment under Section 147 of the IT Act.
Held:
The Hon’ble Bombay High Court in Writ Petition No. 2840 of 2022, held as under:
