Hareshkumar Bhupatbhai Panchani Vs ITO (Gujarat High Court)
Gujarat High Court held that reopening of assessment under section 148 of the Income Tax Act on mere change of opinion is not permissible in law. Accordingly, petition allowed and reassessment notice quashed.
Facts- The petitioner sold an immovable property along with other co-owners for a consideration of Rs.12,35,90,464/-, wherein share of the petitioner was for Rs.02,83,54,388/-. The petitioner having made specific investment, claimed deduction of Rs.01,33,02,123/- u/s. 54F of the Act. Details of such investment are reflected in the return of income for the year under consideration, in which total income at Rs.88,84,560/- was declared. The case of the petitioner was selected for “limited scrutiny”. AO having satisfied himself, framed the assessment u/s. 143(3) of the Act vide order dated 15th December, 2018 without disturbing the original income declared by the petitioner for the year under consideration.
On 30th March, 2021 a notice u/s. 148 of the Act was issued by the Revenue Authorities upon the petitioner seeking, inter alia, reopening the case for the year under consideration. Thereafter, the petitioner filed return of income and further requested to supply copy of reasons recorded for reopening.
The Revenue Authorities vide letter dated 27th July, 2021 supplied copy of reasons for reopening, to which petitioner vide letter dated 25th August, 2021 raised objections against the reopening. The Revenue Authorities, however, vide order dated 02nd February, 2022 disposed of such objections and held that reopening is justified. Being aggrieved, the present petition is filed by the assessee.
