Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Vertiv Energy (P.) Ltd v. ACIT (2024) 160 taxmann.com 696 (Bom.) (HC)

S. 148: Reassessment-Notice to non-existent entity-Amalgamation-Notice issued to an amalgamating company is invalid where the basis for reopening collapses. [S. 2(1B),147 292B, Art. 226]

PMP Auto Components (P.) Ltd v. DCIT [2024] 159 taxmann.com 307 (Bom.)(HC)

S. 148 : Reassessment-Notice-Amalgamation-Non existing company-Notice to non-existent amalgamating company is fundamentally invalid-Error is not a mere procedural or clerical mistake that can be rectified under section 292B of the Income-tax Act, 1961. [S. 147, 292B, Art. 226]

Modern Living Solutions (P.) Ltd. v. ITO [2024] 164 taxmann.com 763 (Bom)(HC)

S. 147: Reassessment-Within four years-Reason to believe-Intimation under S. 143(1)-Reopening notice based on a system-generated alert from the Non-Filer Management System (NMS) without independent application of mind is invalid. [S. 68,139, 143(1), 148, Art. 226]

PIEM Hotels Ltd. v. ACIT [2024] 162 taxmann.com 703 (Bom.)(HC)

S. 147: Reassessment-Change of opinion-Enquiry during original assessment-Where Assessing Officer has raised a specific query during original assessment proceedings to which the assessee has replied, the issue is deemed to have been examined-Reopening assessment on the very same issue, even if not discussed in the assessment order, constitutes an impermissible change of opinion. [S. 37(1), 142(1), 148, Art. 226]

PCIT v. HDFC Bank Ltd. [2024] 162 taxmann.com 390 (Bom.)(HC)

S. 147 : Reassessment-Within four years-Change of opinion-Prior period expenditure-Order of tribunal quashing the reassessment is affirmed. [S. 37(1), 260A]

Paranjape Schemes (Construction) Ltd v. DCIT [2024] 160 taxmann.com 730 (Bom.)(HC)

S. 147 : Reassessment-Reason to believe-Jurisdiction-Unexplained money-Notice based on fundamentally wrong facts pertaining to a different entity-Constitutes non-application of mind-Reopening invalid. [S 69A, 148, 151, Art. 226]

Fine Arts Society v. DDIT (E) [2024] 159 taxmann.com 776 (Bom.) (HC) Editorial : SLP of revenue dismissed, DDIT (E) v. Fine Arts Society (2025) 307 Taxman 224 (SC)

S. 147 : Reassessment-Charitable or religious trust –-Non-application of mind-Receipts from charitable activities mistaken for commercial income-Reopening notice based on mechanical reasoning and factual errors quashed. [S. 11, 143(1) 148, Art. 226]

Balaji Mines and Minerals (P.) Ltd. v. ACIT [2024] 163 taxmann.com 37 (Bom.)(HC) Editorial : SLP of revenue dismissed, ACIT Balaji Mines and Minerals (P.) Ltd (2025) 307 Taxman 303 (SC)

S. 147 : Reassessment-After the expiry of four years / Within four years-Reasons to believe-Reopening based on borrowed information from DRI or Justice M.B. Shah Commission Report without independent application of mind by AO is not permissible-Failure to disclose material facts cannot be alleged based on a subsequent Supreme Court ruling. [S. 148, Art. 226]

Aashish Niranjan Shah v. UOI [2024] 167 taxmann.com 561 (Bom.)(HC)

S. 147 : Reassessment-After expiry of four years-Scrutiny assessment-Where original assessment was completed after a detailed scrutiny of the assessee’s share transactions, a subsequent reopening of assessment on the same issue based on information regarding ‘client code modification’ is invalid, as there was no failure on the part of the assessee to disclose material facts fully and truly. [S. 68,143(3), 148, Art. 226]

Castrol India Ltd. v. DCIT [2024] 162 taxmann.com 67 (Bom.) (HC)

S. 147 : Reassessment-After the expiry of four years-Change of opinion-No failure to disclose material facts-Audit objection not new tangible material-Reassessment notice and order disposing the objection is quashed. [S 36(1)(vii), 36(2), 45, 143(3) 148, Art. 226]