Aim Fincon Pvt. Ltd. Vs ACIT (Gujarat High Court)
Gujarat High Court today quashed a reassessment notice issued under Section 148 of the Income Tax Act, 1961, against AIM Fincon Pvt. Ltd. for the Assessment Year 2012-13. The court ruled that the reopening of the assessment was based on a mere change of opinion by the Assessing Officer (AO) on facts already disclosed and considered during the original assessment proceedings.
The case, AIM Fincon Pvt. Ltd. Vs ACIT, centered on a notice dated March 29, 2016, seeking to reopen the assessment of Arihant Tradecom Pvt. Ltd., which had subsequently merged with AIM Fincon Pvt. Ltd. with effect from April 1, 2013.
Background of the Case:
Arihant Tradecom Pvt. Ltd. (ATPL), the predecessor company, held shares in Highlight Agencies Pvt. Ltd. and Imperial Barter Pvt. Ltd. During the financial year 2011-12 (Assessment Year 2012-13), ATPL sold shares of both companies totaling Rs. 40,00,000/- to Shubhdristi Complex Pvt. Ltd.
ATPL filed its income tax return on September 7, 2012, declaring a loss. The case was selected for scrutiny, and during the assessment proceedings under Section 143(3) of the Act, the AO issued a notice under Section 142(1) on June 2, 2014, requesting details of purchases and sales. ATPL provided these details, including the sale of shares to Shubhdristi Complex Pvt. Ltd., via a letter dated October 8, 2014. The assessment was framed on March 23, 2015, with no additions made regarding the share sale transaction. Only a disallowance under Section 14A was made.
