Hiramoti Texchem Pvt. Ltd. Vs ITO (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Hiramoti Texchem Pvt. Ltd. challenging the notice dated 28.03.2019 issued by the Income Tax Officer, Ward 2(1)(3), under Section 148 of the Income Tax Act, 1961 for Assessment Year 2013-14.
The petitioner had filed its original return of income on 27.09.2013 declaring income of Rs.23,08,270/-. The return was subjected to scrutiny and an assessment order under Section 143(3) of the Act was passed on 30.12.2015 determining total income at Rs.23,08,270/-. Subsequently, the respondent issued the impugned notice under Section 148 on 28.03.2019. Reasons for reopening were supplied by letter dated 02.05.2019. The assessee raised objections on merits and requested that the reassessment proceedings be dropped by letter dated 04.12.2019. The objections were disposed of by the respondent on 11.12.2019.
The petitioner contended that the Assessing Officer had not independently applied his mind and had merely relied upon information received from the Investigation Wing. According to the petitioner, such information could raise suspicion but was required to be examined against the material already available on the assessment record before a valid reason to believe that income had escaped assessment could be formed.
