Kitchen Xpress Overseas Ltd. Vs DCIT (Gujarat High Court)
The Gujarat High Court allowed the writ petition filed by Kitchen Xpress Overseas Ltd. challenging the notice dated 31.03.2019 issued under Section 148 of the Income Tax Act, 1961 for reopening its assessment for Assessment Year 2012-13, along with the order dated 04.11.2019 rejecting the petitioner’s objections to the reopening.
The petitioner, engaged in manufacturing, trading and exporting spices and other products, had filed its return for A.Y. 2012-13 on 29.09.2012 declaring total income of Rs.2,55,56,292/-, including a claim of exemption under Sections 10A and 10AA of Rs.88,52,379/- relating to its Kandla unit. The return was selected for scrutiny under Section 143(3). During the scrutiny proceedings, notices under Section 142(1) required the petitioner to furnish documents supporting its Section 10AA exemption claim, and the petitioner furnished the relevant materials.
The assessment was completed under Section 143(3) on 30.03.2015 at a total income of Rs.3,32,61,259/-. The Assessing Officer revised the Section 10AA deduction to Rs.72,89,629/- and disallowed Rs.15,62,750/-. Separate penalty proceedings under Section 271(1)(c) were also initiated.
Subsequently, on 31.03.2019, the respondents issued a notice under Section 148 proposing reassessment. The petitioner objected, contending that the reopening was beyond four years from the end of the relevant assessment year, that the material relating to the Section 10AA claim had already been examined during scrutiny, and that the reopening amounted to a change of opinion. The objections were rejected on 04.11.2019, followed by a Section 142(1) notice dated 08.11.2019.
