Kayathwal Estate Pvt. Ltd.Vs ITO (Gujarat High Court)
The Gujarat High Court allowed the writ application filed by Kayathwal Estate Pvt. Ltd. challenging the notice dated 28.03.2019 issued under Section 148 of the Income Tax Act, 1961 for reopening its assessment for Assessment Year 2012-13.
The assessee, a private limited company, had filed its return of income on 24.09.2012 declaring total income of Rs.88,770/- and capital gain of Rs.2,73,431/-. The return was initially processed under Section 143(1) and the case was thereafter selected for scrutiny. During the scrutiny proceedings, the Assessing Officer specifically called for details concerning unsecured loans taken by the assessee. The assessee furnished the requested details. The Assessing Officer thereafter passed an assessment order under Section 143(3), making an addition and determining the income at Rs.3,62,200/-.
Read SC Judgment in this case: SC Upholds Gujarat HC Decision Quashing Reopening Beyond Four Years
The assessment was subsequently reopened under Section 147 by notice dated 28.03.2019 under Section 148. The assessee filed its return in response to the notice and requested the reasons recorded for reopening. The reasons supplied by the Revenue relied upon information received from the Investigation Wing concerning search and seizure proceedings in the case of Shri Pravin Kumar Jain and his group. According to the recorded reasons, the investigation had allegedly established that concerns controlled by Shri Pravin Kumar Jain were engaged in providing accommodation entries, including bogus unsecured loans.
