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2022 (9) TMI 1098 - HC - Income TaxValidity of Reopening of assessment u/s 147 - Reopen v/s review - communication of the DGIT Investigation that has triggered the reassessment - differential pricing of the shares issued to the petitioners, at par, and those issued to South Asia Entertainment Holdings ltd., at a premium - HELD THAT:- While it is a settled position that a re-assessment does not permit of a review, the critical difference between the one and the other is that while a review is premised upon the same material upon which two officers adopt differing views or even a situation where the same officer has had a change of heart/mind in regard to the view previously taken, a re-assessment has to survive only based upon new material. The critical test is therefore as to whether the Department had in its possession any material over and above those available in the original records. In this case, the reasons disclose so. The Assessing Authority refers to material received from the DGIT Investigation bringing to his notice information relating to the allegedly offending share allocation and pricing. This constitutes tangible material on the basis of which jurisdiction has been assumed. As in the case of Commissioner of Income Tax. Delhi V. Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] considered the impact of re-assessment proceedings initiated within four years, and upon noticing that there was no new material that had come to the possession of the Department held that the re-assessment was nothing but a review. The assumption of jurisdiction in this case, is based upon additional material over and above what formed part of the records, that have lead to the belief that income has escaped assessment and not a review of existing materials that found part of the assessment records of the petitioners. This issue is answered in favour of the revenue.
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