Reopening of assessment valid after Inquiry suggests the Assessee is beneficiary of Accommodation Entry

Last updated: 02 September 2021

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The Gujarat High Court has ruled that reopening an income tax assessment can be valid, even if the initial assessment order has been passed. The court found that the Assessing Officer had sufficient reason to believe income had escaped assessment, based on inquiries and statements from relevant parties. The court dismissed the petitioner's argument that the reopening was solely due to a change of opinion or based on unreliable statements, confirming no procedural lapses occurred.

Court :
Gujarat HC

Brief :
In Bharatkumar Kalubhai Ghadiya v. Assistant Commissioner of Income Tax, Central Circle 2(3) [R/Special Civil Application No. 7743 of 2021 dated August 19, 2021], Bharatkumar Kalubhai Ghadiya ("the Petitioner") has filed the current petition seeking to quash Notice dated March 18, 2020 by Assistant Commissioner of Income Tax, Central Circle 2(3) ("the Respondent") wherein the Respondent believes that the Petitioner has escaped assessment of Income Tax chargeable under Section 147 of the Income Tax Act, 1961 ("the IT Act").

Citation :
R/Special Civil Application No. 7743 of 2021 dated August 19, 2021

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