Case Law Details
D.K. Realty India Private Limited Vs ACIT (Bombay High Court)
Bombay High Court held that as between the date of the orders of assessment sought to be reopened and the date of forming of opinion by the Income-tax Officer nothing new has happened i.e. there is no change in law, no new material came on record and no new information has been received. Hence, reopening proceedings was just change of opinion accordingly the same is unsustainable in law.
Facts- The petitioner challenges the notice dated 30th March 2021 issued under section 148 of the Income Tax Act, 1961 (‘the Act’) which sought to reopen the petitioner’s assessment for the assessment year 2017-18 on the ground that income had escaped assessment within the meaning of section 147 of the Act.
It was urged that the queries having been raised and the issue considered in the light of the submissions made, as also the order of assessment having been passed under section 143(3), the reassessment proceedings sought to be initiated, would be a clear case of change of opinion, and would not satisfy the jurisdictional condition for the reopening under section 147 of the Act.
Conclusion- Admittedly, between the date of the orders of assessment sought to be reopened and the date of forming of opinion by the Income-tax Officer nothing new has happened. There is no change of law. No new material has come on record. No information has been received. It is merely a fresh application of mind by the same Assessing Officer to the same set of facts. Testing the facts of the present case on the touchstone of the judgments referred hereinabove, it is thus clear that the basis for reopening remains the same which was otherwise the subject matter of scrutiny by the AO during the scrutiny assessment proceedings leading to passing of the order under section 143(3) of the Act.
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