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2020 (2) TMI 839 - HC - Income TaxReopening of assessment u/s 147 - Period of limitation u/s 149 - jurisdiction of income tax officer to issue notice - rejection of the objection of the petitioner - HELD THAT:- It cannot be said that the notice issued under Section 148 of the Income Tax Act, 1961 was without jurisdiction. However, if an order is passed by the assessing officer under Section 147 of the Income Tax Act, 1961 contrary to the well-settled principles of law or despite true and full disclosure of all material facts necessary for the assessment, such order would be liable to be quashed. At the same time, if in the course of such reassessment, the 2nd respondent assessing officer finds any other reasons for justifying reopening of the assessment on some other point, he may do so. Such exercise cannot be stifled under Article 226 of the Constitution of India. Otherwise, the Court would be rendering the Explanation III of the Income Tax Act, 1961, redundant which is not intended. At the same time, confirmation of tax in the course of re-assessment under Section 147 of the Income Tax Act, 1961 has to again satisfy the well-settled principles of law i.e only if there was a failure on the part of the assessee to truly and fully disclose, all material facts that was required at the time of original assessment. No merits in interfering with the reassessment procedure hitherto undertaken by the 2nd respondent assessing officer. At the same time, it is made clear that while passing orders under Section 147 of the Income Tax Act, 1961, the 2nd respondent assessing officer will have to pass an appropriate order on merits considering the decision of the Hon'ble Supreme Court rendered in Commissioner of Income Tax and Another Vs. M/s. Yokogawa India Ltd. [2011 (8) TMI 845 - KARNATAKA HIGH COURT] and the other well-settled principles of law. It is made clear that the order to be passed cannot be based on change of opinion if there was true and full disclosure by the Petitioner at the time of filing of the return. Writ Petition disposed by directing the Petitioner to participate in the adjudicatory mechanism before the concerned Respondent. The respondent shall pass appropriate orders after considering the submission of the Petitioner and after taking note of the decisions of the Hon'ble Supreme Court.
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