Law:

Section:

JUDGMENT 1. The writ petitioner manufactures paints and related products. He also deals in computer accessories. 2. For the assessment year 2006 - 2007 he filed a return of income under the Income Tax Act, 1961. It was filed on 23rd October, 2006. Total income was declared as Rs.3,29,860/-. Tax due thereon was shown as Rs. 49,937/-. It was also declared there that advance tax of Rs. 75,000/- had been paid. A refund of Rs. 25,563/- was claimed. The previous or the financial year was 2005-2006. 3. According to the writ petitioner, he attached a note that Rs.17,97,336/- was received by him in that financial year as subsidy under the West Bengal Industrial Promotion Scheme, 1994. This subsidy was released further to a notification No. 1460-FT dated 27th May, 1994 issued by the government of West Bengal. He treated the receipt as being of a capital nature. Apparently, the writ petitioner, according to the averments in the writ petition, also, mentioned in the note that the said receipt was non-taxable as held by the Income Tax Tribunal Kolkata in its order dated 18th May, 2001 in ITA No. 1080/Cal/98 in the similar case of Re: Rasoi Ltd. v. Dy. CIT, Calcutta. 4. The return was filed under Section 139 of the Act. It was not put under scrutiny or formally assessed. To put it more legalistically, no notice under Section 143 (2) of the Act was issued to the writ petitioner. 5. On 22nd March, 2013 the income tax department issued a notice to the writ petitioner under Section 148 of the Act proposing to reopen the assessment for the assessment year 2006-2007. 6. This notice under Section 148 is issued when the department contemplates action under Section 147 of the Act. It is issued in the case of an income which has, inter alia, "escaped assessment". The law is well-settled that in these proceedings, an assessment cannot be reopened beyond the ordinary period of limitation because a mistake therein is detected or realised or that something which ought to have come to the notice of the department went unnoticed. There is also no room for "change of opinion". (See CIT v. Kelvinator of India Ltd./Eicher Ltd. [2010] 320 ITR 561 (SC) where Mr. Justice S.H. Kapadia for the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492