High Court quashes notice under Income Tax Act, deeming it jurisdiction-less. Full disclosure during original assessment key.

The High Court held that the notice issued under Section 148 of the Income Tax Act for reopening the assessment for the assessment year 2006-07 was without jurisdiction. The Court found that there was full disclosure of material facts during the original assessment, and the Assessing Officer's change in view was impermissible. As a result, the notice and order were quashed and set aside, allowing the petition challenging the reopening of assessment.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 for reopening assessment for assessment year 2006-07 and order disposing of objections to reopening.

Analysis:
1. The petitioner filed the return of income for assessment year 2006-07 on 27 July 2006, and the Assessing Officer assessed the income at Rs.7.06 crores on 28 February 2008 under Section 143(3) of the Act.

2. The Assessing Officer issued a notice under Section 148 of the Act on 22 March 2013 to reassess the petitioner's income for the same assessment year. The reasons for reopening mentioned suppression in the sale price of shares leading to an alleged escape of income amounting to Rs.3,14,73,360.

3. The petitioner objected to the reopening, arguing that it was based on a mere change of opinion and all material facts were disclosed during the original assessment proceedings.

4. The Assessing Officer, in the order dated 12 January 2014, held that the reopening was valid and not a change of opinion, citing discrepancies in the sale prices of shares as the basis for reassessment.

5. The petitioner contended that the notice was unsustainable as it aimed to substitute "full value of consideration received" with "fair value" under Section 48 of the Act, which is impermissible.

6. The High Court noted that the impugned notice was issued beyond four years from the end of the assessment year, requiring a failure to disclose material facts by the assessee for valid reopening. However, there was no such failure alleged in the reasons or the order rejecting objections.

7. The Court found that the reassessment was without jurisdiction as there was full disclosure of material particulars during the original assessment, and the Assessing Officer's change in view was impermissible. The notice and order were quashed and set aside.

8. The petition was allowed with no order as to costs, concluding the legal judgment on the challenge to the notice and order for reopening the assessment for assessment year 2006-07 under the Income Tax Act, 1961.

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