Mathew Cherian (Dr.) v. ACIT (2022) 219 DTR 2 / 329 CTR 809 (Mad.)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Not all information in possession of the officer can be construed as information that qualifies for initiation of proceedings for reassessment, and it is only such information that suggests escapement and which, based upon the material in his possession-Agreement between doctors and hospital-remuneration paid for fixed amount along with components such as number of patients treated etc. [r.w.s.15, 17, 28(i)][S. 148, Art. 226]

Held that, not all information possessed by the revenue can be construed as information that qualifies for initiation of proceedings for reassessment, only such information that suggests escapement and which, based upon the material in his possession, that the officer decides as ‘fit’ to trigger reassessment that would qualify for initiation of reassessment proceedings. The  ‘information’ in possession of the Revenue does not, in light of the settled legal position lead to the conclusion that doctors were getting salary from the hospital and were not merely acting as consultants and that there was escapement of tax,  order set aside. (SJ)  (WP No. 12692 of 1-9-2022)