DIWAKAR ENGINEERS LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THESE writ petitions are filed by the petitioners seeking the relief of quashing of the notices issued under Section 147/148 of the Income Tax Act, 1961 (hereinafter referred to as "The Act ") by the respondents with respect to the Assessment Years 1977-1978 to 1982-1983. One of the prayers in the writ pertained to seeking direction against respondent No.1 to furnish a copy of the reasons for reopening of the completed assessments before issuing the impugned notices. This part of the relief has already become in fructuous in as much as the respondents along with their counter-affidavit have furnished the reasons for initiation of the proceedings under Section 147/148 of the Act.

(2.) THE case of the petitioner is that for the Assessment Years 1977-1978 to 1982-1983, it duly submitted its return of income along with complete details necessary for making the assessments. The assessments orders were thereafter passed under Section 143(3) of the Act for these Assessments Years. After scrutiny of the returns for 1981-82 and 1982-83, the respondents have issued the impugned notices under Section 147/148 of the Act on 24.2.1986 for the six Assessment years thereby reopening the completed assessments. As stated above, the reasons have already been furnished by the respondents in their counter-affidavit and the challenge is now to the fact that the reasons given for reopening of the assessments amount to nothing but a change of opinion in as much as there are no new materials on the basis of which reopening of the assessments can be initiated.

(3.) THE basic contention of the petitioner is that the aforesaid provisions require "reasons to believe " and which reasons had to be a reasonable in that the material sought to be relied upon must have nexus and must be sufficient for reopening of the completed assessments. It was contended that if there is a mere change of opinion without sufficient material for reopening of the assessments, the same is illegal. The counsel for the petitioner has taken us through the reasons which have been given for reopening of the assessments and which have been filed as Annexure R-16 to R-20 along with the counter affidavit. The said reasons are given separately for each assessment years. We reproduce now these reasons for each of the assessment years which are sought to be under Section 147 as under:-