COMMISSIONER OF INCOME TAX Vs. SONATA SOFTWARE LTD.

JUDGEMENT

(1.) THESE Appeals of the Revenue challenge the order passed by the Income Tax Appellate Tribunal, Mumbai Bench dated 20th January 2012 in Income Tax Appeal Nos. 1253 to 1256. The assessment year is 1999 -2000 and 2000 -2001. The two Appeals of the year 2006 are by the Assessee and two by the Revenue. They were directed against four orders of the Commissioner of Income Tax Appeals -VII, Mumbai for assessment years 1997 -1998 to 2000 -2001.

(2.) WE are concerned in these Appeals with the assessment year 1999 -2000 and 2000 -2001.

(3.) THE contention of Mr. Chhotaray, learned Counsel, appearing on behalf of the Revenue is that the Appeals raise a substantial question of law. The questions of law are formulated at pages 15 and 16 of the paper book of Income Tax Appeal No. 947 of 2012 and 14 and 15 of paper book of Income Tax Appeal No. 856 of 2012. It is urged that the Tribunal has erred in law in not considering the merits of the claim or the grounds on which the assessment was reopened. Mr. Chhotaray submits that the Tribunal was aware that the assessment was reopened within four years from the end of the relevant assessment year. That power of the Assessing Officer is very wide. The provision has been amended from 1st April, 1989. Therefore, the Tribunal erred in holding that the reassessment has been erroneously reopened. Further, the Tribunal's conclusion that the reopening of the assessment is vitiated by change of opinion is totally perverse. The Assessing Officer has not considered the applicability of section 40(a) of the Income Tax Act, 1961. There was no opinion formed or conclusion reached by him on that count. If that is the position, then the Tribunal could not have concluded that the reopening is vitiated by a change of opinion. Mr. Chhotaray would rely upon the judgments of the Hon'ble Supreme Court in the case of Assistant Commissioner of Income Tax vs. Rajesh Jhaveri Stock Brokers Private Limited reported in : 2007 (291) ITR 500 (SC) and the earlier judgments of the Hon'ble Supreme Court. He also relies upon the Division Bench Judgment of this Court in the case of Export Credit Guarantee Corporation of India Ltd. vs. Additional Commissioner of Income Tax and Ors. reported in : (2013) 350 ITR 651.