Shubh Buildcon Vs ITO (Gujarat High Court)
Gujarat High Court held that reopening of assessment based on direction of CIT(A) cannot be sustained since the period of limitation prescribed under section 149(1) of the Income Tax Act has expired. Accordingly, reassessment notice u/s. 148 quashed and petition is allowed.
Facts- The petitioner a Partnership Firm filed the return of income on 20.03.2012 along with detailed computation of income for A.Y. 2011-12 which were processed u/s. 143(1) of the Act. The petitioner thereafter on 29.11.2014 filed the return of income for A.Y. 2014-15 declaring total income of Rs.3,74,440/- which was selected for scrutiny and by Assessment Order dated 30.12.2016 passed u/s. 143(3) of the Act the Assessing Officer made additions of Rs.64,80,800/- in the hands of the petitioner as the petitioner disclosed such income during the survey proceedings during the period relevant to A.Y. 2014-15.
Being aggrieved by the order dated 30.12.2016 for A.Y. 2014-15, the petitioner preferred an appeal before the CIT (Appeals). The CIT (Appeals) by order dated 03.04.2019 partly allowed the appeal by estimating gross profit at the rate of 12.5% of the total receipts and confirmed the total additions of Rs.17,95,904/- for A.Y. 2014-15. However, CIT (Appeals) held that such addition is to be made in respective Assessment Years instead of making additions only for A.Y. 2014-15 inasmuch as the project based on which gross profits are estimated was completed between the duration of A.Y.s 2011-12 to 2014-15.
