Reassessment Powers Could Not Be used For Reverification Or For A Rowing Inquiry: Gujarat High Court
Live LawThe Gujarat High Court has held that the reassessment powers could not be exercised either for the purpose of reverification or to have a merry sailing for a rowing inquiry.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that the assessing officer wanted to undertake a fishing inquiry in relation to an issue about which he had already solicited information. The Gujarat High Court has held that the reassessment powers could not be exercised either for the purpose of reverification or to have a merry sailing for a rowing inquiry. The court found that the department's claim that the petitioner received the surrender value of the policy upon its premature redemption and that it was taxable under Section 80CCC of the Act was incorrect. The court quashed the notice issued by the Assessing Officer under Section 148 of the Income Tax Act, 1961, seeking to reopen the assessment in the case of the petitioner for the assessment year 2013–14.