Ashvin Dye-Chem Industries Vs ITO (Gujarat High Court)
Gujarat High Court held that re-opening of assessment solely relying upon information made available on the insight portal, without forming any independent opinion, is unsustainable in law and hence liable to be quashed.
Facts- The Petitioner is a partnership firm, during the year under consideration, entered into certain transactions in Futures & Options which resulted into loss of Rs.41,56,218/- and such loss is duly reflected in the Profit & Loss Such transactions were carried out through the broker namely “ASE Capital Markets Ltd.”.
Suddenly thereafter, the Respondent issued the impugned notice dated 30.03.2021 u/s. 148 of the Act seeking to reopen the case of the Petitioner for the year under consideration. The Respondent, vide order dated 28.02.2022 disposed off such objections and, inter-alia, held that the reopening is justified.
Conclusion- Held that the respondent-Assessing Officer could not have assumed the jurisdiction merely and solely relying upon the information made available on the insight portal without forming any independent opinion on the basis of the material on record vis-a-vis the petitioner is concerned.
Held that the petitioner had disclosed in its return for the Assessment Year 2014-115 the particulars of the loss under the head of “future and options” which was subsequently accepted by the Department. Therefore, the notice for re-opening the assessment on the exact entry under the head of “future and options” is based on change of opinion. The assessee cannot be said to have failed to have fully and truly disclosed all materials facts which would warrant the re- opening after a period of four years, Therefore, this petition succeeds and impugned notice issued under Section 148 of the Income Tax Act, 1961 dated 30th March, 2021 is hereby quashed and set aside.
