Win Star Industries Private Limited Vs ACIT (Gujarat High Court)
The Gujarat High Court allowed the writ petition filed by Win Star Industries Private Limited, which challenged the notice dated 27.03.2019 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2012-13 and the order dated 16.10.2019 rejecting its objections to the reopening.
The petitioner, engaged in processing and trading of yarn, had filed its return on 28.09.2012 declaring total income of Rs.50,93,730/-. The return was selected for scrutiny under Section 143(3). The Assessing Officer sought, among other things, the audit report and certified final accounts. The petitioner furnished the requested documents, including audited financial statements and notes. A further notice under Section 142(1) was also complied with. On 20.03.2015, the Assessing Officer completed the assessment under Section 143(3), determining total income at Rs.1,20,19,371/- after making an addition of Rs.69,25,639/-. The petitioner’s appeal under Section 246-A was partly allowed by order dated 20.10.2015 under Section 250.
After more than four years from the end of A.Y. 2012-13, the Assessing Officer issued the Section 148 notice alleging escapement of income. The petitioner objected, contending that the reopening was barred by the proviso to Section 147 because all material facts had already been fully and truly disclosed during the original scrutiny assessment.
