TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court invalidates Income Tax Act notice, finding Assessing Officer exceeded jurisdiction in reopening assessment.</h1> <h3>Dentsu Aegis Network Marketing Solutions Pvt. Ltd., (Formerly, Carat Media Services India Pvt. Ltd.) Versus Assistant Commissioner of Income-Tax Circle- 6 (2) (1), Mumbai, Principal Commissioner of Income Tax- 6, Mumbai, Union of India</h3> Dentsu Aegis Network Marketing Solutions Pvt. Ltd., (Formerly, Carat Media Services India Pvt. Ltd.) Versus Assistant Commissioner of Income-Tax Circle- 6 ... Issues:Challenging notice under section 148 of Income Tax Act for reopening assessment for Assessment Year 2012-13 and rejection of objections.Analysis:1. Reopening of Assessment: The petitioner challenged the notice dated 27th March 2019 under section 148 of the Income Tax Act for reopening the concluded regular assessment for Assessment Year 2012-13. The petitioner argued that the notice was issued after four years from the end of the relevant Assessment Year, and the Assessing Officer must have reasons to believe that income has escaped assessment. The court examined the reasons recorded for reopening and found that they were not based on fresh tangible material but on the material available during the original assessment. The court held that there was no tangible material for the Assessing Officer to conclude that income had escaped assessment, thereby ruling in favor of the petitioner.2. Disclosure of Material Facts: The court emphasized that the Assessing Officer's jurisdiction to reopen an assessment is limited to cases where there is a failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. It was noted that the petitioner had disclosed the figures of unabsorbed business loss and unabsorbed depreciation in the prescribed form ITR-6 during the original assessment. The court found that the petitioner had fully and truly disclosed the primary facts necessary for assessment, and hence, the Assessing Officer was not entitled to reopen the assessment on a change of opinion.3. Legal Precedent: The court referred to the judgment in the case of Ananta Landmark (P) Ltd. v/s. Dy. Commissioner of Income Tax, where it was held that reopening an assessment based on a change of opinion of the Assessing Officer is not justified if the primary facts necessary for assessment are fully and truly disclosed. The court reiterated that if one view is conclusively taken by the Assessing Officer based on the material on record, it is not permissible for the officer to reopen the assessment and take another view. This legal precedent played a crucial role in the court's decision to quash the impugned notice and rejection of objections.4. Conclusion: Considering the lack of fresh tangible material and the full disclosure of primary facts by the petitioner during the original assessment, the court concluded that the Assessing Officer exceeded the limit of jurisdiction in reopening the assessment. Consequently, the court quashed and set aside the notice dated 27th March 2019 and the order dated 18th September 2019 rejecting objections, thereby ruling in favor of the petitioner.
TaxTMI 
TaxTMI 
