PRITHVI APARTMENTS CO-OP HSG. SOC. LTD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 19(1) MUMBAI)

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 3086 OF 2022 Prithvi Apartments Co-operative Housing .Petitioner Society Limited A co-operative housing society having its registered address at: Society office, Prithvi CHS Ltd., 21 Altamount Road, Grant Road, Mumbai – 400 026. PAN : AAAAP233A Vs. 1. The Assistant Commissioner of Income Tax .Respondents Circle 19(1), Mumbai Room No : 203, 2nd floor, Matru Mandir, Tardeo Road, Mumbai – 400 007. Email : mumbai.dcit19.1@incometax.gov.in 2. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer National Faceless Assessment Centre, Through the Principal Chief Commissioner of Income Tax (National Faceless Assessment Centre), Delhi Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi – 110 003. Email : delhipccit.neac@incometax.gov.in Anand 1 of 8

DATE : 21.04.2025 ORAL JUDGMENT ( PER : JITENDRA JAIN, J.) 1. Heard learned Counsel for the parties. 2. Rule. Rule is made returnable forthwith. By consent, the Petition is taken up for final hearing, since the pleadings in this case are completed. 3. This Petition challenges notice under Section 148 of the Act dated 31.03.2021 for the assessment year 2014 -15. 4. In this case, an assessment order under Section 143(3) of the Act was passed on 07.12.2016. The impugned notice under Section 148 is dated 31.03.2021 i. e. after a period of four years Anand 2 of 8

from the end of the relevant assessment year. 5. The reasons recorded for re-opening the concluded assessment which were furnished to the Petitioner on 18.11.2021 read as under :- Anand 3 of 8

Anand 4 of 8

Anand 5 of 8

above, there is no allegation of any failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. Even on a perusal of the reasons recorded, the said pre-condition cannot be discerned with even in the absence of such allegation. Paragraph Nos. 2 to 6 categorically admit that the reasons are based on verification of the profit and loss account and the other relevant records. If that be so, we fail to understand how the pre-condition specified in first proviso to Section 147 of the Act is satisfied. Therefore, on this short ground itself, the re-opening notice under Section 148 dated 31.03.2021 for assessment year 2014 -15 is required to be quashed and set aside. 8. Even otherwise, the issue of eligibility of interest under Section 80P was a subject matter of investigation in the course of the regular assessment proceedings and same is evident from paragraph 3 of the original assessment order, wherein the issue of deduction under Section 80P is discussed. Insofar as the issue of disallowance under Section 40(a)(ia) is concerned, a query was raised by the Respondents in the course of the assessment proceedings vide notice dated 18.07.2016 and same was replied by the assessee vide letter dated 09.11.2016, wherein all the details with respect to the TDS were furnished. The details are also filed along with this Petition from page 125 to 135. Therefore, on both these grounds i. e. deduction under Section 80P and disallowance for non-deduction of TDS, the issue was examined during the course of the assessment proceedings and Anand 7 of 8

therefore, any attempt to re-open the case on these two issues would amount to re-opening on the basis of change of opinion and review of the earlier order passed under Section 143(3) of the Act. This is not permissible under the Act which confers the power to re-open the case under Section 147 of the Act. 9. In view of above, on both the grounds i. e. there being no allegation of failure to disclose fully and truly all material facts necessary for the assessment and the issues having examined during the course of the original assessment proceedings, the impugned notice under Section 148 of the Act dated 31.03.2021 seeking to re-open concluded assessment of assessment year 2014 – 15 is quashed and set aside. 10. Rule is made absolute in the above terms. 11. Accordingly, the Petition stands disposed of. (JITENDRA JAIN, J.) (M. S. SONAK, J.) Anand 8 of 8