High Court Division · Special Original Jurisdiction
Jahurul Islam Medical College and Hospital v National Board of Revenue and others
Writ Petition 6249/2025 · Rule made absolute · Decided 21 July 2026
Jahurul Islam Medical College and Hospital challenged, under article 102 of the Constitution, notices and a letter dated 12.12.2024 issued by respondent No. 4 purportedly under section 212 of the Income-tax Act, 2023. The notices sought to reopen past and closed assessments, merged with appellate orders, for the assessment years 2016-2017, 2017-2018, 2018-2019 and 2020-2021. A Rule Nisi was issued and the operation of the notices was stayed. Reading the notices, the Court found that they alleged some income might have escaped assessment and that the letter stated the assessments were reopened because documents relating to the petitioner's income needed to be verified. The Court explained that section 212 allows reopening where the Deputy Commissioner of Taxes has reason to believe that a sum payable has escaped payment in an assessment year. It does not authorise reopening a completed assessment only to verify documents or the source of income. The Rule was made absolute and the notices were declared to be without lawful authority and of no legal effect.
- Whether section 212 of the Income-tax Act, 2023 authorises the Deputy Commissioner of Taxes to reopen completed assessments merely to verify documents or the source of income.
- Section 212 of the Income-tax Act, 2023 permits the Deputy Commissioner of Taxes to reopen assessments where he has reason to believe that a sum payable by an assessee has escaped payment in an assessment year.
- Section 212 does not authorise the Deputy Commissioner of Taxes to reopen a completed assessment only to verify the concerned documents or the source of income.
- Respondent No. 4 was not authorised under section 212 to reopen the past and closed assessments for 2016-2017, 2017-2018, 2018-2019 and 2020-2021 in order to verify income and documents.
- The notices and letter dated 12.12.2024 were declared to have been issued without lawful authority and of no legal effect.
The provision of section 212 does not authorize the Deputy Commissioner of Taxes to reopen a completed assessment only to verify the concerned documents or the source of income.
