Case Law Details
Harsh Kaushal Corporation Vs ITO (Bombay High Court)
In the present case, it is evident from the reasons recorded for reopening that the petitioner had truly and fully disclosed all material facts necessary for the purpose of assessment. In fact, in the reasons for reopening, there is not even a whisper as to what was not disclosed. The Assessing Officer has relied upon the records filed by petitioner including the profit and loss account and balancesheet and says from those records it is revealed that there is closing stock in trade of Rs.33,49,89,003/-. Therefore, the respondent No.1 is relying upon the same primary facts which were before the Assessing Officer who concluded the assessment proceedings to take a different view. In our view, this is not a case where the assessment is sought to be reopened on the reasonable belief that income had escaped assessment on account of failure of assessee to disclose truly and fully all material facts that were necessary for computation of income but this is a case wherein the assessment sought to be reopened on account of change of opinion of the Assessing Officer about the manner of computation. In view of proviso to section 147 of the Act, the same is not permissible.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1] This petition takes exception to the notice dated 30.03.2021 issued by respondent No.1 under section 148 of the Income Tax Act, 1961 (for short “the Act”) seeking to reopen the assessment for Assessment Year (A.Y.) 2014 -15 and the order on objections dated 28.01.2022 passed by the respondent No.2.
2] The petitioner is a registered partnership firm registered under the Indian Partnership Act, 1932 and is engaged in the business of construction.
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