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TMI Blog2020 (1) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case, there was no suppression on the part of the assessee and merely because there is a change in opinion, reopening could not have been done in the manner and method it has been done in the present case. There was no additional material for formation of the believe as contemplated under Section 147 - Decided in favour of assessee. - Writ Petition No.24940/2019 - - - Dated:- 16-12-2019 - S.C. Sharma Judge And Shailendra Shukla Judge For the Petitioner : Shri Vijay Assudani, learned counsel For the Respondents : Ms. Veena Mandlik, learned counsel ORDER The petitioner before this Court has filed this present petition being aggrieved by the order dated 13.08.2019 passed by the respondent No.2 / Income Tax Officer 2(3), Indore. 02. The petitioner is a Private Limited Company incorporated under the provisions of the Companies Act, 1956. The petitioner / Company, on 25.10.2015, electronically, submitted a return for the assessment year 2015 16 (Financial Year 2014 15) disclosing a return of ₹ 12,21,160/-. On 12.09.2016, a notice under Section 143 (2) of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there is an order of assessment accepting the returned income, and therefore, without any fresh information in possession of the Assessing Officer merely on the basis of change of opinion, reopening could not have been done as has been done in the present case and proceeding under Section 148 cannot be initiated to review the earlier opinion. 08. It has further been stated that the word 'reasons to believe' used under Section 147 of the Act of 1961 cannot be equated with the words 'reasons to suspect'. It has been stated that there is no material for formation of believe as contemplated under Section 147 of the Act of 1961 and a prayer has been made to quash the impugned order dated 13.08.2019 as well as for quashment of notice dated 04.02.2019. 09. A reply has been filed in the matter and it has been stated by the respondents that they have initiated action against the petitioner keeping in view Section 147 of the Act of 1961 and the Department is entitled to reopen the case of the petitioner. 10. It has been stated by the respondents that in case, the Assessing Officer is having a reason to believe that taxable inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in possession of Assessing Officer after taking proper approval from competent Authority. Hence, in view of the above discussion, the objection filed stands disposed off and the re-assessment proceedings will continue as per law 16. The aforesaid order / reply makes it clear that the case of the petitioner has been reopened on the basis of information in possession of the Assessing Officer. 17. Sections 147 and 148 of the Act of 1961 reads as under:- 147. Income escaping assessment 2 If the Assessing Officer has reason to believe] that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139.] (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so. 18. In the present case, the reasons for reopening the assessment have not been disclosed to the assessee and merely on basis of change of opinion, the reassessment has been ordered. The words 'reasons to believe' under Section 147 of the Act of 1961 cannot be equated with 'reasons to suspect' and reassessment has been ordered without disclosing any fresh information in possession of the Assessing Officer. 19. It is true that Section 147 of the Act of 1961 confers a jurisdiction upon the Assessment Officer to initiate the proceedings for reopening of the assessment for bringing in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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