Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 568 - HC - Income TaxNotice for reopening of assessment u/s 148 – Full and true disclosure – Change of opinion - Held that:- In case of an assessment completed u/s 143 (1), the requirement of recording "reasons to believe" are mandatory – Relying upon THE COMMISSIONER OF INCOME TAX-V Versus ORIENT CRAFT LTD. [2013 (1) TMI 177 - DELHI HIGH COURT] - The foundation of the AO’s jurisdiction and the raison d’etre of a reassessment notice are the "reasons to believe"- it should have a relation or a link with an objective fact, in the form of information or facts external to the materials on the record - external facts or material constitute the driver, or the key which enables the authority to legitimately re-open the completed assessment - In absence of this objective "trigger", the AO does not possess jurisdiction to reopen the assessment - if there are no "reasons to believe" based on new, "tangible materials", then the reopening amounts to an impermissible review - there is nothing to show what triggered the issuance of notice of reassessment – no information or new facts which led the AO to believe that full disclosure had not been made - The notice of the AO’s order rejecting the objections, and the arguments of the Revenue nowhere indicate how the AO was impelled to seek re-opening of the assessee’s case – the reassessment notice cannot be sustained – Decided in favour of Assessee.
|