Opinion of Income Tax Dept not Tangible Material for Reopening Assessment: Calcutta HC quashes Reassessment [Read Order]
Personal opinion of the Assessing Officer not to considered as tangible source for reopening assessment under the Income Tax Act, 1961
![Opinion of Income Tax Dept not Tangible Material for Reopening Assessment: Calcutta HC quashes Reassessment [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/12/Calcutta-HC-Reopening-Assessment-Tangible-Material-taxscan.jpg "Opinion of Income Tax Dept not Tangible Material for Reopening Assessment: Calcutta HC quashes Reassessment [Read Order]")
The Calcutta High Court quashed reassessment proceedings and observed that the opinion of Income Tax Department not tangible material for reopening assessment. The appellant, Dinesh Kumar Goyal HUF, had challenged the order passed under Section 148A(d) of the Income Tax Act dated 4th August, 2023 for the assessment year 2017-18. The Single Bench has dismissed the writ petition on the...
The Calcutta High Court quashed reassessment proceedings and observed that the opinion of Income Tax Department not tangible material for reopening assessment.
The appellant, Dinesh Kumar Goyal HUF, had challenged the order passed under Section 148A(d) of the Income Tax Act dated 4th August, 2023 for the assessment year 2017-18. The Single Bench has dismissed the writ petition on the ground that the assessee would be entitled to raise all issues in the re-assessment proceedings. The correctness of the order is challenged in this appeal.
The said writ petition was allowed by order dated 28.09.2022 on the ground that there has been violation of principles of natural justice and the matter was remanded back to the assessing officer for fresh consideration. Subsequently, the additional representation was given by the assessee and the assessee was heard in the matter and the order under Section 148A(d) of the Income Tax Act was passed which was impugned in the writ petition.
A Division Bench comprising Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya observed that “The assessing officer has stated that the bank statements in respect of the transactions done for the financial year 2015-16 (assessment year 2016-17) has to be mandatorily verified to examine the nature of transactions. This cannot done by the assessing officer because the proceedings initiated by the assessing officer for reopening the assessment for the assessment year 2016-17 has been quashed.”
“In our view, this is a personal opinion of the assessing officer. However, for the purpose of reopening an assessment there should be a tangible material placed by the assessing officer to show that there was escapement of income from the payment of income tax. This being conspicuously absent as could be seen from the annexure to the show cause notice dated 30.05.2023, the reopening proceedings have to be held to be bad in law” the Bench concluded.
To Read the full text of the Order CLICK HERE
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