Newturn Automation Private Limited Vs ITO (Gujarat High Court)
The Gujarat High Court partly allowed the writ petition by quashing the assessment order passed under Section 147 read with Section 144B of the Income-tax Act and remanding the matter to the Assessing Officer (AO) for fresh adjudication. The challenge was directed against the order passed under Section 148A(d), the notice issued under Section 148, and the reassessment order dated 18.02.2026 for Assessment Year 2018-19.
The petitioner, engaged in the business of trading and marketing parking lifts, boom barriers and gate automation, had filed its return of income declaring total income of ₹55,64,410. After the case was flagged on the Insight Portal, a notice under Section 148A(b) was issued. The petitioner responded by seeking the material relied upon by the department and furnished its computation of income and bank statements. The requested details were supplied on 16.08.2024, following which the order under Section 148A(d) was passed on 27.08.2024. Thereafter, notices under Sections 143(2) and 142(1) were issued, followed by a final show-cause notice, culminating in the reassessment order dated 18.02.2026.
The petitioner contended that the reassessment order was based on an entirely new ground not forming part of the information relied upon for reopening. It was further submitted that the Assessing Officer considered only the credit entries in the bank account while ignoring the corresponding debit entries and failed to appreciate that the amounts represented sales already disclosed in the financial statements.
