Supreme Court bars tax officials from reopening settled assessments

The case concerns a dispute where the Revenue (Assistant Commissioner of Income Tax) challenged the High Court's decision to quash a reassessment order that disallowed tax deductions claimed by Omaxe Limited for Assessment Year 2006-07, arguing that the assessment could be reopened despite a prior settlement by the Income Tax Settlement Commission.

Who it concerns: Appellants: Assistant Commissioner of Income Tax & Another (Revenue); Respondents: M/s. Omaxe Limited; Bench: Justice S.V.N. Bhatti.

What the court decided

• The Supreme Court issued a reportable judgment in Civil Appeal No. 9190 of 2013.
• The Court reviewed the High Court's judgment dated 13.07.2012, which had quashed the Show Cause Notice dated 30.06.2010 and the Reassessment Order dated 08.11.2011.
• The underlying issue involved the disallowance of a deduction of Rs. 65,65,17,999/- under Section 80IB(10) of the Income Tax Act, 1961, for AY 2006-07.
• The Court examined the validity of the Revenue's attempt to reopen an assessment that had been settled by the Income Tax Settlement Commission (ITSC) via an order dated 17.03.2008.

Also in the document

• The High Court had previously quashed the reassessment order, finding that the Income Tax Settlement Commission's order was conclusive under Section 245-I of the Act.
• The Income Tax Settlement Commission had previously rejected the Revenue's application to declare the settlement order void due to alleged misrepresentation of facts.
• The dispute centers on whether the Assessing Officer had jurisdiction to issue a notice under Section 148 for an assessment year already settled by the Commission.