HIGH COURT OF GUJARAT
Sun Pharmaceutical Industries Ltd.
versus
Deputy Commissioner of Income-tax
SPECIAL CIVIL APPLICATION NO. 652 OF 2005
AUGUST 6, 2012
JUDGMENT
1. Petitioner has challenged notice dated 25.2.2004 issued by respondent, Deputy Commissioner of Income Tax under section 148 of the Income Tax Ac, 1961 (‘the Act’ for short) by which he seeks to reopen the assessment of the petitioner for the assessment year 1999-2000.
2. The petition arises in following factual background. The petitioner is a company registered under the Companies Act and is regularly assessed to tax. For the assessment year 1999-2000, the petitioner Company filed its return of income on 27.12.99 declaring total income of Rs. 3,63,23,970/- under section 115JA of the Act. Such return was taken in scrutiny by the Assessing Officer. He framed assessment under section 143(3) of the Act on 28.3.2002 computing total income at Rs. 5,10,02,030/-
3. It is this assessment which the respondent Assessing Officer seeks to reopen for which the impugned notice came to be issued on 25.2.2004. Present is therefore a case where the assessment previously framed after scrutiny is reopened within a period of four years from the end of relevant assessment year.
4. At the request of the petitioner, the Assessing Officer supplied reasons recorded by him, for reopening such assessment. Such reasons read as under:
“I. The scrutiny assessment U/s. 143(3) was completed in this case on 22.03.2000. While scrutinizing the return of income for assessment of subsequent years, it is seen that the assessee’s claims are not proper. It is seen that the assessee has submitted voluminous details along with the return of income which are not at all required to be filed along with the return of income. What is required is the Tax Audit Report, Profit and Loss Account and Balance Sheet, Other Statutory Reports pertaining to deductions u/s. 80HHC and 80IA, Computation of income, Proof of payment of Advance Tax and TDS Certificates. The various details submitted by the assessee are very confusing and complicate the matter pertaining to the assessment. The details filed by the assessee are such as filing of which are necessitated with the object to create confusion in the matter and frustrate quick understanding. The assessee has furnished the branches details. The statements furnished are not straight forward e.g. Please refer to the profit calculation sheet/statement u/s. 80IA (copy enclosed) for a period of April, 1998 to March 1999. Though the name of the statement is profit calculation u/s. 80-IA, but I do not find anywhere figure of the profit which has been determined for the purpose of 80-IA. Thus the assessee has deliberately presented the facts in such a manner so Audit Report, the R&D expenses are as under:-
