Reopening of assessment challenged on factual and disclosure grounds, with ad-interim stay granted pending further examination.

A reopening notice under section 148 of the Income-tax Act was challenged on the basis that the assessment had already been completed under section 143(3), that the recorded reasons rested on an incorrect factual premise, and that there was no failure to fully and truly disclose material facts. At the admission stage, the High Court considered the challenge substantial enough to issue notice and granted ad-interim protection, staying further proceedings under the impugned notice until the matter was examined further.

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Issues: Whether the notice for reopening of assessment warranted interference at the stage of admission, and whether ad-interim protection should be granted against further proceedings.

Analysis: The petition challenged reopening on the basis that the assessment had already been completed under section 143(3) of the Income-tax Act, 1961, that the reasons proceeded on an incorrect factual premise, and that the recorded reasons did not disclose any failure to fully and truly disclose material facts. The Court, at the admission stage, found it appropriate to issue notice and grant interim protection pending further consideration.

Outcome: Notice issued returnable on 20.01.2020, and further proceedings pursuant to the impugned notice under section 148 were stayed by way of ad-interim relief.

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