TaxTMI 
TaxTMI 
2022 (3) TMI 1361
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....ncome chargeable to tax has escaped assessment and directing the petitioner to submit a return for the said assessment year. The petitioner has also challenged the order dated 02.09.2021 passed by the ACIT rejecting her objections against the initiation of re-assessment proceedings under Section 147 read with Section 148 of the Act. 3. The petitioner's case is that on 30.03.2016, he had filed an income tax return for the assessment year 2015-16 for a total income of Rs. 10,69,430/- before the Income Tax Officer-3 (5), Lakhimpur and the return of the petitioner was processed on the same day under Section 143 (1) of the Act. On 16.05.2019, the Income Tax Officer-3 (5), Lakhimpur Kheri had issued a notice to the petitioner under Section 133 (6) of the Act calling for certain information pertaining to the assessment year 2017-18. The petitioner submitted the requisite information through her reply filed on 04.06.2019 and the Income Tax Officer accepted the submissions of the petitioner made in her reply and dropped the proceedings. 4. On 31.03.2021, the ACIT issued the impugned notice under Section 148 of the Act to the petitioner in respect of the assessment year 2015-16 stating tha....
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....ieve that the income amounting to Rs. 6,94,540/- has escaped assessment in respect of the assessee. Hence the issue of notice under Section 148 of the Act was deemed fit. 7. On the basis of the aforesaid reasons, the Joint Commissioner of Income Tax, Sitapur Range communicated that the case falls under Clause 1 (v) of the Instruction dated 04.03.2021 issued by the CBDT, New Delhi and necessary approval of the learned CCIT, Allahabad has been obtained. Considering the reasons recorded by the Assessing Officer, the Approving Authority recorded satisfaction that it was a fit case of issuance of a notice under Section 148 of the Act. 8. The petitioner filed her objections against the notice, stating that during the assessment year 2015-16 she had earned gain on sale of shares. The Income Tax Officer-3 (5), Lakhimpur Kheri had made an inquiry and had issued a notice to the petitioner under Section 133 (6) of the Act on the above transaction relating to shares. The petitioner had submitted a written reply alongwith the relevant evidences and after examining the same, the Income Tax Officer-3 (5), Lakhimpur Kheri had disposed of his notice/inquiry by recording "submission of the assesse....
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....s prima facie some material on the basis of which the Department could reopen the case, without going into the sufficiency or correctness of the material. 15. Mr. Suyash Agarwal has submitted that the Income Tax Officer-3 (5), Lakhimpur Kheri had made an inquiry and had issued a notice to the petitioner under Section 133 (6) of the Act on the above transaction relating to shares. The petitioner had submitted a written reply alongwith the relevant evidences and after examining the same, the Income Tax Officer-3 (5), Lakhimpur Kheri had disposed of his notice/inquiry by recording "submission of the assessee is accepted. Hence, no action is required in this case". Therefore, there is no justification for issuance of a notice under Section 148 of the Act on the same issue. 16. A copy of the said order of ITO-3(5) has been filed as Annexure No. 3 to the Writ Petition. It does not bear any number, date or the official seal of the authority who has purportedly passed the order so as to inspire even a prima facie confidence regarding its genuineness. Moreover, it would be no bar against issuance of a notice under Section 148 of the Act, provided the requisite conditions exist. 17. The r....
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....he notice relating to assessment year 2017-18, no opinion had been framed by the Assessing Officer regarding the reasons on which the notice under Section 148 of the Act has been issued for the assessment year 2015-16. 20. In the objections filed against the notice under Section 148 of the Act, the petitioner has relied upon certain decisions of the other High Courts holding that reassessment without any additional information amounts to change of opinion. 21. The meaning of the expression "change of opinion" has been explained by the Hon'ble Supreme Court in CIT v. Techspan India (P) Ltd., (2018) 6 SCC 685, in the following words: - "16. To check whether it is a case of change of opinion or not one has to see its meaning in literal as well as legal terms. The words "change of opinion" imply formulation of opinion and then a change thereof. In terms of assessment proceedings, it means formulation of belief by an assessing officer resulting from what he thinks on a particular question. It is a result of understanding, experience and reflection. 17. It is well settled and held by this Court in a catena of judgments and it would be sufficient to refer to CIT v. Kelvinator of Ind....
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....s not a case of "change of opinion" and challenge to the notice under Section 148 of the Act on the ground that it seeks to initiate reassessment on the ground of a change of opinion, cannot be accepted. 23. Sri Agarwal has contended that the "reason to believe" must be of the assessing officer himself and he cannot act on the reasons recorded by any other authority. In the present case, the assessing officer has acted on a report of the Assistant Director of Income Tax (Inv.), Unit-3 (3), Kolkata. The notice issued on the basis of information received from any other officer cannot be said to have been issued by the assessing officer on the basis of his own "reasons to believe" and it does not conform to the statutory mandate of Section 148 of the Act. He has placed reliance on a judgment of this Court in Indra Prastha Chemicals Pvt. Ltd. and others Versus Commissioner of Income-Tax and another, 2004 (271) ITR 113 = 2004 SCC OnLine All 2133, wherein it has been held that: - 9. Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any asses....
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....isclosure of the "true" and "full" facts in the case and the ITO would have the jurisdiction to reopen the concluded assessment in such a case. It is correct that the assessing authority could have deferred the completion of the original assessment proceedings for further enquiry and investigation into the genuineness to the loan transaction but in our opinion his failure to do so and complete the original assessment proceedings would not take away his jurisdiction to act under Section 147 of the Act, on receipt of the information subsequently. The subsequent information on the basis of which the ITO acquired reasons to believe that income chargeable to tax had escaped assessment on account of the omission of the assessee to make a full and true disclosure of the primary facts was relevant, reliable and specific. It was not at all vague or non-specific. ... 25. From a combined review of the judgments of this Court, it follows that an Income Tax Officer acquires jurisdiction to reopen 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 r....