Gulbrandsen Private Limited Vs DCIT (Gujarat High Court)
The Gujarat High Court examined a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961, and an order passed under Section 148A(3), both relating to Assessment Year 2021–22. The petitioner had originally filed its return of income, which was processed and accepted under Section 143(1). Subsequently, the case was selected for scrutiny, and a notice under Section 143(2) was issued. During scrutiny, a show cause notice dated 13.12.2023 was issued proposing variations, including transfer pricing adjustments and disallowance of additional depreciation. The petitioner responded with detailed explanations and supporting documents.
Thereafter, a Draft Assessment Order dated 28.12.2023 was passed under Section 144C(1), proposing additions, including transfer pricing adjustment of ₹4,98,982 and disallowance of additional depreciation of ₹3,48,402. The petitioner communicated its decision not to approach the Dispute Resolution Panel and instead intended to file an appeal before the Commissioner of Income Tax (Appeals). However, no final assessment order under Section 143(3) read with Section 144C(13) was passed by the Assessing Officer within the prescribed limitation period, resulting in the lapse of proceedings.
Subsequently, the Assessing Officer issued a notice under Section 148A(1) on 28.03.2025 alleging escapement of income of ₹8,47,384, based on the same issues earlier considered in scrutiny proceedings. The petitioner filed a reply contending that the reopening was unjustified as the issues had already been examined and no fresh material had been brought on record. Despite this, the Assessing Officer passed an order under Section 148A(3) and issued notice under Section 148.
