ECI Technology Private Limited Vs ACIT (Gujarat High Court)
The Gujarat High Court considered a writ petition filed by ECI Technology Private Limited challenging the notice dated 28.03.2019 issued under Section 148 of the Income Tax Act, 1961, seeking to reopen the assessment for Assessment Year 2012-13. The petitioner, formerly engaged in manufacturing wire harnesses, discontinued its business from 02.02.2009 and subsequently disposed of its assets. During Assessment Year 2011-12, it entered into an agreement to sell its land, building, plant and machinery, and furniture and fixtures for Rs.7.30 crores. The sale deed was subsequently executed during Assessment Year 2012-13. The petitioner originally filed its return on 29.11.2012 declaring total income of Rs.5,99,67,930, including capital gains of Rs.2,56,39,346 from the transaction. Following enhancement of the land and building value by the stamp valuation authority, the petitioner filed a revised return on 06.03.2014 declaring total income of Rs.3,73,60,400, taking into account the Section 50C deeming provision.
The revised return was scrutinised and assessment was completed under Section 143(3) by order dated 08.01.2015, accepting the returned income. During the scrutiny proceedings, the Assessing Officer had specifically raised queries regarding the computation of capital gains. The petitioner furnished detailed replies and supporting documents on 24.12.2014 and 07.01.2015 and also explained the matter during personal hearing.
