Extended Limitation Cannot Be Invoked In Absence of ‘Omission & Suppression of Material Facts’ to Evade Tax: Calcutta HC

The Calcutta High Court ruled that the extended limitation period for tax reassessment cannot be invoked unless there is evidence of omission or suppression of material facts to evade tax. The court emphasized that mere change of opinion by the assessing officer does not justify the extension of the limitation period. This decision came in response to a case where the Income Tax Department sought to reopen an assessment after the normal limitation period had expired, citing alleged discrepancies. The court highlighted the necessity for concrete evidence of wrongdoing, not just speculative claims, to extend the limitation period for tax reassessment.