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2018 (10) TMI 872 - MADRAS HIGH COURTReopening of assessment u/s 148 - “Change of opinion” - completed assessments are sought to be reopened after a lapse of six years - receipt of share capital with share premium - high value of share premium - sufficiency of the reasons and the modus operandi of the investigation - Held that:- The writ petitioner, being a 'Company', is duty bound to respond to the notice to prove their innocence or otherwise. This Court is of an undoubted opinion that if the AO has reason to believe that income has escaped assessment, it confers jurisdiction to reopen the assessment. It is however, to be noted that the conditions stipulated in the Act must be fulfilled if the case falls within the ambit of Section 147. There are some materials on record and the informations with the Department of Income Tax, the reopening of the assessment in the writ petition with reference to Sections 147 to 153 of the Act, is in accordance with law and there is no infirmity, as such. Writ petitioner is bound to respond to the AO for the purpose of arriving a conclusion and for taking a decision. In the event of passing an order of assessment or reassessment, then the writ petitioner is entitled to prefer an appeal contemplated under the provisions of the Act. Based on the preliminary informations gathered by the AO, the notice issued for the purpose of reopening of the assessment would not provide a cause of action for filing of the present writ petition and this Court has no hesitation in holding that the writ petition is not only premature, even on merits the writ petitioner has failed to establish any acceptable reason to grant the relief, as such, sought for. This being the principles to be followed, the writ petitioner has miserably failed to establish any legally acceptable ground for the purpose of interfering with the actions initiated by the respondent by invoking the provisions of the Income Tax Act, 1961. Thus, there is no infirmity as such, in respect of the initiation of the proceedings for reopening of the assessment under the Act and the writ petition is devoid of merits. The respondent is empowered to proceed further in accordance with law. Accordingly, the writ petition stands dismissed.
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