Court quashes Income Tax notice for 2012-13 assessment. No failure to disclose material facts.

The Court quashed the notice issued under Section 148 of the Income Tax Act for the assessment year 2012-13, along with the order rejecting the petitioner's objections. The Court found that the information used to reopen the assessment was already known to the authorities during the original assessment, and there was no failure to disclose material facts. The reassessment was deemed to be based on information already on record, leading to the petition being allowed in favor of the petitioner.

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Issues Involved:
1. Validity of notice issued under Section 148 of the Income Tax Act for assessment year 2012-13.

The petitioner filed a return of income for assessment year 2012-13, which was selected for scrutiny. The petitioner contended that all relevant information regarding the sale of land had been disclosed during the original assessment proceedings. The respondent issued a notice under Section 148 of the Act in 2019, seeking to reopen the assessment. The petitioner raised objections on the grounds that there was no failure to disclose material facts and that the notice was time-barred. The respondent rejected the objections and proceeded with the reassessment.

The petitioner argued that the information forming the basis for reopening the assessment was already available during the original assessment. It was contended that no new material had come to light, and the reassessment was merely a change of opinion by the authorities. The respondent, however, defended the reassessment by stating that the transaction in question was found to be a bogus transaction and that there was deliberate misrepresentation by the petitioner in the sale deed.

The Court examined the reasons supplied for reopening the assessment and found that the information relied upon was known to the authorities before the original assessment was completed. The Court also noted that the petitioner had provided detailed responses regarding the sale of land during the original assessment proceedings. It was observed that there was no failure to disclose material facts, and the reassessment was based on information already on record.

In light of the above, the Court quashed the notice dated 28.03.2019 and the order disposing of the petitioner's objections. The petition was allowed in favor of the petitioner.

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