TRIDENT LIMITED Vs. UNION OF INDIA AND OTHERS

JUDGEMENT

(1.) Challenge in the present writ petition is to the show cause notice dated 29.3.2011, proposing to initiate reassessment proceedings under Section 147 of the Income Tax Act, 1961 (for short 'the Act'), inter-alia, on the ground that the basis of the notice is only a change of opinion and, thus, does not fall within the scope of reassessment.

(2.) The petitioner in its return for the Assessment Year 2006- 07 capitalized interest on capital work in progress and on addition to fixed assets. Such information was submitted by the petitioner to the Assessing Officer on 28.11.2008 (Annexure P.3). Thereafter, the assessment was finalized in terms of Section 143(3) of the Act on 28.11.2008. The perusal of the Assessment order does not reflect any discussion on the capitalized interest on capital work in progress and on addition to fixed assets.

(3.) On 29.3.2011 vide Annexure P.6, the petitioner has been issued a notice under Section 147 of the Act on the ground that the income chargeable for tax for the Assessment year 2006-07, has escaped assessment. On 28.9.2011, at the request of the petitioner, the reasons for reassessment were communicated. The relevant extracts from the reasons so communicated read as under:-