Pandesara Infrastructure Limited Vs ACIT (Gujarat High Court)
Section 148 Notice Set Aside Because Higher Depreciation Did Not Increase Tax Liability; Gujarat HC Quashes Reassessment as No Escapement of Income Was Established; High Court Quashes Section 148 Proceedings Because MAT Liability Remained Unchanged; Section 147 Reopening Fails Because Assessment Was Reopened on Mere Change of Opinion.
The Gujarat High Court allowed a writ petition challenging the notice dated 28.06.2025 issued under Section 148 and the order dated 28.06.2025 passed under Section 148A(3) of the Income-tax Act, 1961 for Assessment Year (AY) 2020-21.
The petitioner, engaged in providing waste effluent management services to industries in Pandesara, Surat, filed its return of income for AY 2020-21 declaring nil income after claiming deduction of ₹20.51 crore under Section 80IA(4)(i). It also offered book profits of ₹23.50 crore to tax under Section 115JB. The return was selected for complete scrutiny through CASS, and an assessment under Section 143(3) read with Section 144B was completed on 30.08.2022, accepting the returned income.
Subsequently, the Assessing Officer issued notices under Section 148A alleging that income had escaped assessment because the petitioner had claimed depreciation at 10% on buildings and 15% on plant and machinery instead of 40%, resulting in an alleged wrong claim of depreciation and deduction under Section 80IA(4)(i). After considering the petitioner’s replies, the Assessing Officer passed an order under Section 148A(3) holding that income of ₹15.91 crore had escaped assessment and issued a notice under Section 148.
