2022 (7) TMI 1472 - HC - Income Tax

High Court sets aside order under Income Tax Act, emphasizes proper assessment procedures

The High Court set aside the impugned order and notice issued under Section 148A(d)/148 of the Income Tax Act, remanding the matter back to the Assessing ... Reopening of assessment u/s 147 - ‘change of opinion’ - HELD THAT:- A perusal of the paper book reveals that the issue which is sought to be reopened in the proceeding u/s 148 had been discussed, deliberated and verified by the AO at the time of original assessment proceedings. It seems that the AO had applied its mind and then passed the assessment order in favour of the petitioner. While passing the impugned order u/s 148A(d) AO has wrongly concluded that the assessee had not disclosed the sale of the property and long term capital gain in the ITR filed or was accepted by the AO. Keeping in view the aforesaid, the impugned order and notice issued u/s 148A(d)/148 are set aside and the matter is remanded back to the AO for fresh consideration in accordance with law within four weeks. Issues Involved:Challenge to order under Section 148A(d) of the Income Tax Act, 1961 and consequential notice for Assessment Year 2013-14.Analysis:The High Court dealt with a writ petition challenging an order passed under Section 148A(d) of the Income Tax Act, 1961, and a consequential notice issued under Section 148 for the Assessment Year 2013-14. The petitioner contended that the reassessment was a 'change of opinion' as the issue had been previously addressed during the original assessment proceedings. The petitioner's counsel highlighted that the Assessing Officer had already considered and decided on the matter in the initial assessment order under Sections 143(3) and 154 of the Act. The court observed that the Assessing Officer had examined and verified the issue during the original assessment, indicating a prior application of mind before passing the assessment order in favor of the petitioner.The court noted that the impugned order under Section 148A(d) incorrectly concluded that the assessee had not disclosed the sale of property and long-term capital gain in the Income Tax Return (ITR) or to the Assessing Officer. Consequently, the court set aside the impugned order and notice issued under Section 148A(d)/148 of the Act, remanding the matter back to the Assessing Officer for fresh consideration within four weeks in accordance with the law. As a result, the present writ petition and pending application were disposed of, granting relief to the petitioner.This judgment emphasizes the importance of proper assessment procedures and the necessity for Assessing Officers to thoroughly review and consider all relevant information before initiating reassessment proceedings. It underscores the requirement for a valid basis for reassessment and the need to adhere to legal requirements and principles while conducting such proceedings under the Income Tax Act, 1961.