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| The Tax Publishers2020 TaxPub(DT) 1685 (Guj-HC) : (2020) 270 TAXMAN 0304 INCOME TAX ACT, 1961
Section 147
Where assessment had already been made in hands of association of persons, AO sought to reopen assessment to make protective addition in hands of assessees, proceedings under section 147 were wholly without jurisdiction.
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Reassessment - Validity - Assessment already made in hands of AOP - Reopening of assessment to make protective addition in hands of assessee
Issue was as regards validity of reassessment proceedings initiated by AO under section 147 against assessee, when assessment was already made in hands of association of persons. Held: Reopening of assessment could be made only when AO has a reason which is present in his mind when he forms his reason to believe that income has escaped assessment; statute does not contemplate reopening of an assessment under section 147 on a hypothesis or a contingency which may emerge in future. Even though assessment had already been made in hands of association of persons, AO sought to reopen assessment to make protective addition in hands of assessees, proceedings under section 147 were wholly without jurisdiction.
Followed:Principal CIT & Ors. v. Sahara India Life Insurance Company Ltd. ITA No. 475 : 2019 TaxPub(DT) 6933 (Del-HC); Sundaram Finance Ltd. v. Asstt. CIT (2018) 403 ITR 407 (Mad) : 2018 TaxPub(DT) 2565 (Mad-HC); CIT & Ors. v. SSA'S Emerald Meadows (2016) 73 taxman.com 241 (Kar) : 2018 TaxPub(DT) 0953 (Karn-HC); CIT & Ors. v. Manjunatha Cotton and Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC); CIT & Anr. v. SSA'S Emerald Meadows 2016 TaxPub(DT) 4242 (SC)
REFERRED : DHFL Venture Capital Fund v. ITO (2013) 358 ITR 471; Vadilal Gases Ltd. v. Union of India (2015) 64 taxmann.com 56 (Guj.); Kranti Associates (P.) Ltd. v. Masood Ahmed Khan (2010) 9 SCC 493; Whirlpool Corpn. v. Registrar of Trade Marks AIR 1999 SC 22
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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