C.I.T. CENTRAL, JAIPUR vs. M/S ARAVALI MINERALS and CHEMICALS IND.

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ITA/173/2013HC RajasthanRJHC01026416201301 September 20151 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the reopening of assessment under Section 147 of the Income Tax Act, 1961, was initiated merely on the basis of a change of opinion by the Assessing Officer. The Court found itself satisfied with the ITAT's conclusion that such a reopening is impermissible, citing interpretations by the Hon'ble Supreme Court and various High Courts. The High Court reasoned that since the invocation of Section 147 was based on an impermissible ground (change of opinion), the appeal did not involve any substantial question of law that would warrant interference. Therefore, the appeal was dismissed. No issue was expressly left undecided.

What were the facts?

The appeal is filed by the Commissioner of Income Tax (Central), Jaipur against the order dated 24.01.2013 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, Jodhpur. The ITAT had examined the facts of the case and concluded that the reopening of assessment under Section 147 of the Income Tax Act, 1961, was based solely on a change of opinion by the Assessing Officer. The High Court perused the ITAT's judgment and found itself satisfied that the invocation of Section 147 was indeed based on a change of opinion, which is not permissible. Consequently, the High Court found no substantial question of law warranting its interference.

What were the issues?

1. Whether the reopening of assessment under Section 147 of the Income Tax Act, 1961, based on a change of opinion by the Assessing Officer, is permissible? (Question of law) Assessee's Contention: The ITAT held that reopening of assessment based on a change of opinion by the Assessing Officer is not permissible. This interpretation aligns with pronouncements by the Supreme Court and various High Courts. Revenue's Contention: The revenue, represented by the Commissioner of Income Tax, challenged the ITAT's order, implying that the reopening was justified. However, the judgment does not explicitly record the specific arguments or authorities relied upon by the revenue before the High Court, other than the fact that they are questioning the correctness of the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR. *** D.B. INCOME TAX APPEAL NO.173/2013 (C.I.T. CENTRAL, JAIPUR V/S M/S ARAVALI MINERALS AND CHEMICAL INDUSTRIES PVT. LTD. UDAIPUR.) *** DATE OF ORDER

01.09.2015

HON'BLE MR. GOVIND MATHUR,J HON'BLE MISS JAISHREE THAKUR ,J

Mr.K.K.Bissa for the appellant. To question correctness of the order dated 24.01.2013 passed by Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur, this appeal is preferred. Learned Income Tax Appellate Tribunal after examining all facts of the case arrived at a conclusion that the decision for re-opening the assessment as per Section 147 of the Income Tax Act was taken merely on basis of change of opinion by the assessing officer and that is not permissible in view of interpretation of the provisions made by Hon'ble the Supreme Court as well as by various High Courts of the Country. From perusal of the judgment given, we are satisfied that the authority under Section 147 was invoked merely on basis of change of opinion and that is not at all permissible, the appeal, therefore, does not involve any substantial question of law that may warrant interference by this court. The appeal, therefore, is dismissed. [JAISHREE THAKUR], J. [GOVIND MATHUR], J. Anil Singh

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