2021 (6) TMI 556

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....ncome Tax Act, 1961 for the purpose of proviso to Section 147 of the Income Tax Act, 1961 for the Assessment Year 2009-2010. The petitioner called for the reasons for reopening the assessment as per the decision of the Hon'ble Supreme Court in G.K.N.Driveshafts (India) Ltd. v. ITO, 259 ITR 19 (SC). 3. By a communication dated 27.05.2016, the respondent/Income Tax Officer has furnished the following reasons for reopening of the income tax assessment:- "The assessee has purchased movie rights for Rs. 15,68,00,000/- (Theatre & Negative Rights), which is a capital expenditure and depreciation to be claimed. The assessee has purchased movie rights (Theatrical & negative rights) for Rs. 15,68,00,000/- and sold only satellite right....

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....pinion under Sections 147 & 148 of the Income Tax Act, 1961 cannot be exercised by the officer to succeed the officer who passed the original order of assessment. It is further submitted that the impugned communication dated 25.11.2016 merely reiterates the reasons given by the impugned communication dated 23.05.2016 and is therefore liable to be quashed. 5. The learned counsel the petitioner referred to the following decisions:- 1. Narayanappa Vs CIT, 63 ITR 219 (SC) 2. Modi Vs ITO, 75 ITR 367 3. CIT Vs Hemachandra, 77 ITR 1 4. Gangasaran Vs ITO, 130 ITR 1 5. CIT Vs Kelvinator, 256 ITR 1 6. IPCA Laboratories Vs Gajanand, 251 ITR 416 7. Foramer Vs CIT, 247 ITR 436 8.....

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....for the petitioner and the learned senior standing counsel for the respondent. 9. I have also perused the documents filed by the petitioner and the reasonings given by the respondent. The assessment was completed for the Assessment Year 2009-2010 on 19.12.2011. It preceded a notice from the respondent/predecessor. The petitioner was represented by her Chartered Accountant. By a communication dated 24.11.2011, the Chartered Accountant has given the details of income offered by the petitioner from the sale of film rights. The letter also encloses a ledger extract of income offered and requested the respondent to let the Chartered Accountant to know as to which of the transactions and which of the agreements were required. The subsequent co....

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.... This should be paid as per demand notice enclosed." 11. Therefore, the question that arises for consideration in this writ petition is whether there was true and full disclosure by the petitioner at the time of assessment or whether the petitioner is entitled to state that the impugned proceedings were on account of change of opinion. 12. I have perused the records. I have also considered the submissions of the learned counsel for the petitioner and learned senior standing counsel for the respondent. Before the assessment was completed, the petitioner's auditor vide letter dated 24.11.2011 has clearly stated that the petitioner was trader of rights in films and that the petitioner has not claimed any appreciation and consequent....