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2019 (5) TMI 1061 - HC - Income TaxReassessment notice u/s 148 - original assessment u/s 143(3) - period of limitation - assessee on receipt of the notices filed returns and requested for the reasons which was rejected by AO - reason to believe - quoting of reasons with notice - HELD THAT:-The Court cannot come to the conclusion that non quoting of the reasons by the Assessing Officer in the impugned notice will vitiate the entire proceedings. If such a proposition is adopted, then it would be certainly difficult for the executives to reopen the cases as per the provisions of the Act. The procedures are contemplated under the Act, enabling the assessee to avail the opportunity and defend their respective cases in accordance with the provisions contemplated. The exercise of judicial review in such matters regarding the initiation of the proceedings are to be exercised cautiously and in order to ensure that the taxations are done properly and the assessees are made to pay the income tax in accordance with the provisions of the Income Tax Act. The amended phraseology of “reason to believe" must be interpreted that the Assessing Officer on receipt of any such new material or materials in relation to the non furnishing of fact by the assessee has made out a prima facie opinion that it is the case for reopening of the assessment, then he can issue notice u/s 148 and thereafter, the procedure of furnishing the reasons, receiving objections and conducting scrutiny and all other procedures contemplated under the provisions of the Act will suit as follow. As the present case falls u/s 149(1)(b), the period of limitation prescribed is six years. In view of the fact that the notice has been issued within a period of six years, the ground of limitation raised on behalf of the writ petitioners, fails. As far as the ground in relation to the change of opinion, it is premature on the part of the writ petitioners to come to such a conclusion whether it is a change of opinion or the reopening is made based on the new or additional material available with the Income Tax Department, the same can be ascertained only after furnishing objections to the Income Tax Department by the assessee. In the absence of having knowledge about the reasons, the writ petitioners cannot come to the conclusion that there is no new material or reason to reopen the assessment already closed. Such a ground raised is not only presumptive but premature. The Income Tax Department has to furnish the reasons to the writ petitioners and on receipt of the reasons, if the writ petitioners are of the opinion and there are no additional material or new materials are available then they can submit their objections in respect of the change of opinion or reason to believe. The objections to be submitted in this regard may contain all such explanations or grounds raised in the present writ petitions before the Assessing Officers. This being the legal principles settled by the Hon'ble Supreme Court [2002 (11) TMI 7 - SUPREME COURT] as well as by this Court [2018 (11) TMI 1617 - MADRAS HIGH COURT] & [2018 (10) TMI 811 - MADRAS HIGH COURT] , as per the judgment cited supra, this Court has no hesitation in holding that the writ petitioners are not substituted any acceptable legal ground for the purpose of interfering with the notices issued u/s 148. Thus, the writ petitioners are bound to face the reopening proceedings by availing the opportunities to be provided by the Income Tax Department. Income Tax Department is directed to furnish the reasons for reopening of the assessment for the years referred in the impugned notices to the writ petitioners, within a period of four weeks from the date of receipt of a copy of this order. On receipt of the reasons from the Income Tax Department, the writ petitioners are directed to submit their objections/explanations and the documents if any, within a period of four weeks from the date of receipt of the reasons from the Income Tax Department. The Assessing Officer shall adjudicate the matter by providing opportunity to all the parties concerned and take a decision and pass assessment orders on merits
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