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 22.03.2019 issued by the Income Tax Officer, Ward 2(1)(3) under Section 148 of the Income-tax Act, 1961 for Assessment Year 2014-15.
The petitioner had filed its original return of income on 19.11.2014 declaring income of Rs.26,24,120/-. The return was subjected to scrutiny and an assessment order under Section 143(3) was passed on 30.09.2016 determining total income at Rs.26,24,120/-. Subsequently, the respondent issued the impugned notice under Section 148 on 22.03.2019 seeking to reopen the assessment. The reasons for reopening were supplied on 02.05.2019. The assessee raised objections and requested that the reassessment proceedings be dropped, following which the objections were disposed of by the respondent on 11.12.2019.
Before the High Court, the petitioner contended that the Assessing Officer had not independently applied his mind and had merely borrowed satisfaction from information received from the Assistant Director of Income Tax (Investigation). According to the petitioner, information received from the Investigation Wing could raise suspicion but had to be examined against the records available with the Assessing Officer and evaluated before a valid reason to believe that income had escaped assessment could be formed.
