Assessing Officer Has No Jurisdiction To Reopen Assessment If Dispute Is Settled Under Kar Vivad Samadhan Scheme: Bombay High Court

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The bench of Justice K. R. Shriram and Justice M. M. Sathaye pronounced a judgement dated 9th June 2023 in case of Citi Bank N.A. V/S S J Ojha & others in Case No.: Writ Petition No.2189 Of 2000. Said bench has observed that has observed that upon a declaration being made, tax arrears being determined, and paid, and a certificate issued under the KVSS, there is no jurisdiction of assessing officer to reopen the assessment by a notice except where it is found that any material particular furnished in the declaration is found to be false.

The object of the KVSS was to de-clog the system of litigation by giving assessee an opportunity to finally settle all the tax issues relating to an assessment year upon payment of certain amounts.
The petitioner has challenged the action of the respondent or department seeking to reopen the petitioner’s completed assessment for the assessment 1992-1993. Despite repeated requests to provide reasons to believe, the petitioner was not provided with them.

The petitioner submitted that the assessment for the entire year was settled by following the provisions of the KVSS, and the Designated Authority, after application of mind, had made an order under Section 90, which has been complied with by making payment of the tax computed under the KVSS. There was no question of reopening any issue that was the subject matter of the order of the designated authority.

The court held that the reopening of the assessment was merely on the basis of a change of opinion by the Assessing Officer, and that does constitute justification or reasons to believe that income chargeable to tax has escaped assessment.

 

Read the order: 

 

 

 

 

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