NTPC LTD Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These writ petitions are in respect of notices issued under Section 148 of the Income Tax Act, 1961 seeking to reopen concluded assessments under Section 147 of the said Act. These petitions pertain to the assessment years 1999-2000, 2001-02, 2002-03 and 2003-04. All the impugned Section 148 notices were issued on 03.02.2006. Insofar as the assessment year 1999-2000 (pertaining to writ petition No.15693/2006) is concerned, the assessment is a proposed to be reopened after a lapse of four years from the end of the assessment year and therefore, the proviso to Section 147 would have to be considered. Insofar as the other three writ petitions are concerned, the proposed reopening is within the period of four years and, therefore, the issues relevant for the invocation of the proviso to Section 147 of the said Act would not require any consideration. It may be pointed out that in respect of the very same petitioner, virtually identical issues had come up for consideration before this Court in respect of the assessment year 2000-01. That writ petition was numbered as WP(C) 14562/2006 and a detailed judgment has been delivered on 10.01.2013 whereby the notice under Section 148 has been quashed and proceedings pursuant thereto have also been quashed.

(2.) We find that the said decision in WP(C) 14562/2006, inter alia, held that there was no failure on the part of the petitioner to fully and truly disclose all material particulars necessary for its assessment and, therefore, the condition precedent stipulated in the proviso to Section 147 had not been satisfied. As a result of which, the propond reopening beyond the period of four years was impermissible in law. In addition to the above conclusion, this Court also held that the issuance of the notices under Section 148 of the said Act, in the facts and circumstances of the case, would amount to nothing but a mere change of opinion. This finding is apparent from paragraph 37 of the said decision wherein the following observations are made :-

(3.) The learned counsel for the respondent had sought to argue that the present writ petitions were different and distinct from the earlier writ petition which resulted in the judgment dated 10.01.2013 inasmuch as in respect of three of the years in question i.e., assessment years 2001-02 to 2003-04, the issue of the proviso to Section 147 pertaining to full and true disclosure was not attracted. It is only in respect of the assessment year 1999-2000 where the proviso would come into play. But, from the above observations it is clear that this Court had decided the case pertaining to assessment year 2000-01 not only on the aspect of full and true disclosure but also on the aspect of change of opinion. It is a well accepted position that the issue of change of opinion is equally relevant for matters in which the reopening is sought beyond four years as it is to cases where the reopening is sought within four years of the end of the relevant assessment year. The material facts of the present writ petitions as also of WP(C) 14562/2006 are identical. Furthermore, the purported reasons which have been issued for the reopening of the assessments in respect of the years involved in the present writ petitions as also the assessment year 2000-01 involved in WP(C) 14562/2006 are common. Therefore, we are of the opinion that these writ petitions are fully covered by the decision in WP(C) 14562/2006 rendered on 10.01.2013. Consequently, the impugned notices dated 03.02.2006 issued under Section 148 of the said Act and all proceedings pursuant thereto are liable to be quashed.