Income Tax Act, 1961, Section 147, 148 – Income tax – Reopening of a concluded assessment–Change of opinion – While framing the initial assessment orders of the assessee for the three assessment years in question, the assessing officer had made an independent analysis of the incomings and outgoings of the assessee for the relevant previous years and thereafter had passed the assessment orders under Section 143(3)of the Act – An assessment order under Section 143(3) is preceded by notice, enquiry and hearing under Section 142(1), (2) and (3) as well as under Section 143(2) – If that be the position and when the assessee had not made any false declaration, it was nothing but a subsequent subjective analysis of the assessing officer that income of the assessee for the three assessment years was much higher than what was assessed and therefore, had escaped assessment – This is nothing but a mere change of opinion which cannot be a ground for reopening of assessment -Assessee has asserted both in the pleadings and in the oral hearing that though it could not file regular books of account along with the returns for the three assessment years under consideration because of seizure by the department, nonetheless the returns of income were accompanied by tentative profit and loss account and other details of income like cash flow statements, statements showing the source and application of funds reflecting the increase in the capital and current accounts of the partners of the assessee etc., which were duly enquired into by the assessing officer in the assessment proceedings – Held that the Tribunal was justified in coming to the conclusion that the reassessments for the three assessment years under consideration were not justified. – High Court erred in reversing such findings of the Tribunal – Common order of the High Court liable to be set aside and the common order of the Tribunal restored. (Para 42 to 45)
SUPREME COURT OF INDIA
2024 STPL(Web) 50 SC
[2024 INSC 53]
M/S Mangalam Publications, Kottayam Vs. Commissioner Of Income Tax, Kottayam
Civil Appeal Nos. 8580-8582 of 2011 With Civil Appeal Nos. 8599-8603 of 2011 Civil Appeal No. 8604 of 2011 Civil Appeal Nos. 8593-8598 of 2011 Civil Appeal Nos. 8583-8587 of 2011 Civil Appeal Nos. 8588-8592 of 2011-Decided on 23-1-2024
https://stpllaw.in/wp-content/uploads/2024/04/2024-STPLWeb-50-SC.pdf
