PCIT Vs Nilkanth Quarry Works LLP Vs (Gujarat High Court)
Summary: The Gujarat High Court considered a Revenue appeal under section 260A challenging the Income Tax Appellate Tribunal, Surat order dated 09.10.2024 in ITA No. 406/SRT/2024 for AY 2015-2016. The Revenue proposed two questions concerning the validity of reassessment under section 147 in the absence of a section 143(2) notice, and the sustainability of revision under section 263 when the underlying reassessment order was invalid. :contentReference[oaicite:1]{index=1}
The assessee was incorporated as an LLP on 22.06.2016, after the relevant previous year, and the erstwhile M/s Shree Nilkanth Quaryy Works partnership firm was converted into the LLP on 04.07.2016. The partnership firm had filed its return for AY 2015-2016 on 30.09.2015 declaring total income of Rs.57,43,190/-. The Assessing Officer subsequently received information from the ADIT (Inv.), Unit-1(2), Ahmedabad regarding transactions of Rs.1,55,55,450/- with M/s Maruti Enterprises, described as providing accommodation entries. Reassessment proceedings were initiated against the LLP with prior approval under section 151. :contentReference[oaicite:2]{index=2}
According to the assessee, it could not file a return in response to the section 148 notice because of a system problem on the income-tax portal and because the LLP was incorporated only on 22.06.2016. The Assessing Officer observed that the return should be filed manually and that the order should also be passed manually, but stated that this was not possible in the faceless scheme. The assessment dated 28.03.2022 was accordingly framed under sections 147 read with 144 and 144B at Rs. ‘Nil’ income without making any addition. :contentReference[oaicite:3]{index=3}
