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2021 (4) TMI 796 - HC - Income TaxReopening of assessment u/s 147 - writ petitioner contended that the reopening of assessment is made without jurisdiction and in the absence of any tangible evidence with reference to the provisions of the Act - Whether reopening of assessment is based on change of opinion? - HELD THAT:- The reason to believe and the requirements for reopening of assessment are well enumerated under Section 147 of the Income Tax Act. However, in the present case, the petitioner has failed to establish that the reason for reopening is connected with the facts adjudicated originally by the Assessing Officer. Thus, there are new materials available before the Authorities Competent for the purpose of reopening of the assessment and therefore, the writ petition is devoid of merits. High Court cannot make a roving enquiry in respect of the reasons, which are otherwise based on some materials objects were not scrutinised or adjudicated by the Assessing Officer in the original assessment order. The order dated 07.11.2018 issued by the Deputy Commissioner of Income Tax, disposing of the objections raised against the initiation of action under Section 147 of the Act, reveals that the issue involved in the original assessment under Section 143(3) of the Act and the reasons for reopening of assessment under Section 147 of the Act, are different. Deputy Commissioner of Income Tax, in clear terms, formed an opinion that the issue involved during the original assessment was dis-allowance of slump sale and the reasons for reopening of assessment under Section 147 of the Act, was to reassess the income of ₹ 82,49,045/-, which has escaped assessment being entirely different. When factually, the Deputy Commissioner of Income Tax formed an opinion by assigning reasons that the issue involved during the original assessment was different from that of the reasons for reopening of assessment, then there is no reason for the High Court to go into the further details by conducting a roving enquiry and it is for the Competent Authorities to adjudicate the issues on merits and by affording opportunity to the writ petitioner in the manner prescribed under the Statute. It is not as if the reopening of the assessment is the final proceedings. It is only an initiation and the petitioner is bound to avail the opportunity to be provided for the purpose of establishing his case with reference to certain facts and circumstances and by producing documents and evidences. Such an exercise cannot be done by the High Court under Article 226 of the Constitution of India. Thus, once the Competent Authority formed an opinion that the issue involved during the original assessment is unconnected with the reasons for reopening of the assessment under Section 147 of the Act, then the High Court is expected to be slow in interfering with the reopening of the assessment and the authorities must be provided with the opportunity to conduct further adjudications/enquiry by following the procedures contemplated and by affording an opportunity to the assessee and the assessee is also at liberty to establish his case with reference to the evidences available and therefore, this Court is of an opinion that the reasons stated in the impugned order are candid and convincing. There is no violation, as such, in respect of Section 147 of the Income Tax Act and the reasons for reopening of assessment is different with reference to the details furnished in the order dated 07.11.2018 passed by the Deputy Commissioner of Income Tax. Thus, the petitioner is at liberty to participate in the process of enquiry and defend his case in the manner known to law.
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