Hiramoti Texchem Pvt. Ltd. Vs ITO (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Hiramoti Texchem Pvt. Ltd. challenging the notice dated 28.03.2019 issued under Section 148 of the Income Tax Act, 1961 for AY 2012-13. The petitioner had filed its original return of income on 28.09.2012 declaring income of Rs.20,15,440/-. The return was subjected to scrutiny and an assessment under Section 143(3) was completed on 09.12.2014 determining total income at the same amount of Rs.20,15,440/-. Thereafter, the Assessing Officer issued the impugned reassessment notice on 28.03.2019 and supplied the reasons for reopening on 02.05.2019. The assessee objected to the reassessment proceedings, but its objections were disposed of by the respondent on 11.12.2019.
The reopening was premised on an investigation report of the ADIT (Investigation) concerning transactions with M/s. Manibhadra Textile Company, a proprietorship concern of Shri Bhavesh Sureshchandra Shah. According to the information available with the Department, the concern had received credits from three entities, including the petitioner, following which its proprietor had withdrawn amounts through self-cheques and cash. The petitioner had deposited Rs.95,26,354/- in the bank account of M/s. Manibhadra Textile Company, and the transaction was regarded as a high-value transaction which, according to the reasons for reopening, did not commensurate with the return of income.
