TaxTMI 
TaxTMI 
TaxTMI 
2002 (8) TMI 27
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....rgued that the impugned notice should be quashed on the ground of being ultra vires section 148 read with section 147 of the Act. Learned counsel further argued that respondent No. 1 does not have the jurisdiction to reopen the assessment simply because he felt that the assessment has not been correctly made or that the benefit under section 80-I of the Act was wrongly given to the petitioner. He relied on the judgment of the Supreme Court in CIT v. Corporation Bank Ltd. [2002] 254 ITR 791 and of the Full Bench of the Delhi High Court in CIT v. Kelviniator of India Ltd. [2002] 256 ITR 1 and argued that mere change of opinion is not a valid ground for reopening the assessment. We have given serious thought to the arguments of learned counse....
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....he time of assessment under section 143(3). The annual report of the assessee-company, for the year 1988-89 relevant to the assessment year 1989-90 has brought out the following facts: 1. Commercial operation was started in the financial year 1988-89 before March 31, 1989. 2. During the three months of commercial productions (January, 1989 to March, 1989,), the company was able to produce and supply 345 engines to Punjab Tractors Ltd. for their tractors applications. 3. As per the profit and loss account for the year ended March 31, 1989, the assessee-company had shown sales and also claimed manufacturing and other expenses. Movement in stock of engines and work-in-progress is also reflected. 4. Note No. 11 in Schedule M gives the part....
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.... Officer acquires jurisdiction to reopen an assessment under section 147(a) read with section 148 of the Income-tax Act, 1961, only if on the basis of specific, reliable and relevant information coming to his possession subsequently, he has reasons, which he must record, to believe that, by reason of omission or failure on the part of the assessee to make a true and full disclosure of all material facts necessary for his assessment during the concluded assessment proceedings, any part of his income, profits or gains chargeable to income-tax has escaped assessment. He may start reassessment proceedings either because some fresh facts had come to light which were not previously disclosed or some information with regard to the facts previously....
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.... had escaped assessment.... One of the purposes of section 147 appears to us to be to ensure that a party cannot get away by wilfully making a false or untrue statement at the time of original assessment and when that falsity comes to notice, to turn around and say 'you accepted my lie, now your hands are tied and you can do nothing'. It would be a travesty of justice to allow the assessee that latitude." In Raymond Woollen Mills Ltd. v. ITO [1999] 236 ITR 34 (SC), their Lordships of the Supreme Court rejected the challenge to the notice of reassessment by observing that at the stage of notice, the court can only consider whether there is a prima facie case for reassessment and reopening of proceedings cannot be quashed by going into the ....