2014 (10) TMI 72

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.... the Income Tax Act (for short the Act) were passed on 20.03.1992 and 26.03.1992 respectively. It is necessary to note that reference number of H.U.F. is R-201 and that of the respondent in his individual capacity, is R-760. The Assessing Officer issued a notice, dated 16.09.1994, in exercise of power under Section 148 of the Act with the approval of the Deputy Commissioner proposing to reopen the assessment of  the H.U.F. However, the notice was issued to the respondent. In compliance with the notice, the respondent appeared before the Assessing Officer. He raised an objection to the very reopening of the assessment stating that there was no valid basis therefor. He has also stated that the proposal to reopen the assessment was in ....

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....r of rectification could have been passed under Section 154 of the Act, duly issuing notice. However, the power under Section 147 of the Act was invoked and notice under Section 148 of the Act was issued. Here itself, a note requires to be added that mere change of opinion by an Assessing Officer on the set of facts, which constitute the basis for an earlier order of assessment, cannot constitute the basis to invoke power under Section 147 of the Act. Secondly, since the reopening of the assessment under Section 147 of the Act would expose the assessee to not only additional liability, but also punitive measures, such as interest and penalty, the prescribed procedure is required to be followed meticulously. It has already been mentioned ....