BOMBAY HIGH COURT: AO CANNOT TAKE RESOURCE TO RE-OPEN ASSESSMENT TO REMEDY ERROR RESULTING FROM HIS OVERNIGHT IN ASSESSMENT PROCEEDING

The Bombay High Court in the case Emkay Global Financial Services Limited Versus Assistant Commissioner of Income Tax observed and has held that the assessing officer cannot take recourse to reopen the assessment to remedy the error which is resulting from his oversight in the assessment proceeding initiated.

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The bench comprising of Justice K. R. Shriram and Justice Kamal Khata in the case observed and has stated that the assessment cannot be reopened by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts, as the Income Tax Officer had material facts before him when he made the original assessment.

In the present case, the petitioner or assessee is in the business of trading shares and stock. The petitioner in the plea challenged the action of the respondent department for issuing notice under Section 148 of the Income Tax Act, 1961, seeking to reassess the petitioner's income for Assessment Year 2015-2016.