TMI Blog2004 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... tion - as such impugned notices are liable to be quashed and set aside on this count alone. - - - - - Dated:- 4-2-2004 - Judge(s) : V. C. DAGA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by V.C. Daga J. - The facts: The petitioners are engaged in the business of manufacturing of bidis and sale thereof. The petitioners are challenging three notices issued under section 148 of the Income-tax Act dated March 14, 1997 and March 27, 1997 in Writ Petition No. 2624 of 1997 seeking to reopen assessments for the assessment years 1986-87 to 1988-89; whereas in Writ Petition No. 3399 of 1997 the petitioners are challenging the notices both dated June 10, 1997, directing the reopening of the petitioners assessments fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sections 80HH, 80HHA and 80-I has not been looked into in the original assessment order dated February 29, 1988." The aforesaid reasons were also pressed into service while advancing oral submissions to support the notices directing reopening of the assessments for the respective years. Submissions Learned counsel appearing for the petitioners, contended that it is settled law that the respondents could initiate proceedings for reassessment under section 147 of the Act for the assessment year 1986-87 or even for the subsequent years subject to satisfying the conditions mentioned therein. Those conditions are to be satisfied before the respondents can legally assume jurisdiction to issue a notice for reopening concluded assessments. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the very initiation of the proceedings becomes bad in law. In her submission, in the present cases, all the aforesaid conditions have not been complied with. She further submits that the burden is on the Assessing Officer to establish that the jurisdictional conditions which are required to be satisfied, in order to validly initiate reassessment proceedings, have been fulfilled. She submits that respondent No. 1 has not discharged the said burden cast upon him, as such impugned notices are bad and illegal. Learned counsel for the petitioners further submits that prior to the issuance of a notice under section 148, the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. She further submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been issued merely on a change of opinion, as such notices are without jurisdiction and unsustainable in law. Learned counsel for the petitioners in support of her submissions relied upon the judgment of the Allahabad High Court in the case of Foramer v. CIT [2001] 247 ITR 436 wherein the Allahabad High Court had observed that notice issued under sections 147 and 148 on the basis of mere change of opinion by the income-tax authorities is not valid as held by the Supreme Court in Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996; Gemini Leather Stores v. ITO [1975] 100 ITR 1 and Delhi High Court in Jindal Photo Films Ltd. v. Deputy CIT [1998] 234 ITR 170 and ruled that the law that the assessment could not be reopened on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to issue notices for reopening the assessment of the assessment years in question, even after the expiry of the period of four years from the end of the relevant assessment year. As such notices under challenge are not only legal and valid but they are well within the prescribed limitation. He, thus, prayed for dismissal of the petition with costs. In the rejoinder, learned counsel for the petitioners brought to our notice the material disclosed in the returns for all these years and submitted that prior and subsequent to the assessment years in question, all the deductions claimed by the petitioners under sections 80HH, 80HHA, 80-IA were allowed on the basis of similar quality of disclosures made by the petitioners. She further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons recorded do not allege any failure on the part of the assessee to disclose fully and truly all material facts required for the assessments in question. Under these circumstances, the basic requirements for reopening of the assessments beyond the period of four years from the end of the relevant assessment years, viz., failure on the part of the assessee to disclose fully and truly all material facts are not satisfied, as such impugned notices are liable to be quashed and set aside on this count alone. It is not in dispute that for all the subsequent years, the claims of the petitioners under the relevant sections 80HH, 80HHA and 80-I have been upheld by the Tribunal and those orders have become final and absolute. In the above vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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