Landmark Cases on Reassessment and Section 148
605 decisions, ranked by how many judgments on BharatTax rely on them.
An Assessing Officer cannot reopen an assessment under Section 147/148 of the Income Tax Act, 1961, based solely on a change of opinion regarding facts already disclosed and accepted during the original assessment.
Where reassessment proceedings are initiated based on statements from an accountant and partner admitting unverifiable wages, such proceedings may be challenged, even if not objected to before the Assessing Officer.
Reassessment notices are valid if the Assessing Officer has reason to believe, based on definite and specific subsequent information, that income has escaped assessment. The sufficiency of these reasons is not a matter for the court to judge.
Reopening of assessment based on an audit objection is unsustainable in law. The reopening must be based on tangible reasons and not merely on an audit report.
Reopening of assessment proceedings is invalid if the reasons for reopening are identical to an audit report, indicating a lack of independent application of mind and subjective satisfaction by the Assessing Officer. The Assessing Officer must form an independent belief for the reopening notice to be sustained.