Mahendra Gumanmalji Lodha Vs ACIT (Gujarat High Court)
Summary: The Gujarat High Court considered a challenge to the reopening of the petitioner’s assessment for Assessment Year 2013-14 pursuant to notice dated 29.03.2019. The petitioner’s original return had undergone scrutiny under Section 143(3) of the Income-tax Act, 1961, culminating in an assessment order dated 29.01.2016. During that assessment, the Assessing Officer had considered the petitioner’s net interest income of Rs.2,03,59,901/-, the profit and loss account and debit of Rs.26,82,419/- towards expenses, including finance charges (interest) of Rs.24,43,488/-. The petitioner also contended that all relevant bank statements, including the bank account subsequently referred to in the reopening proceedings, had already been furnished and examined during the original scrutiny assessment.
In the reopening proceedings, the petitioner was called upon to explain credits aggregating to Rs.1,01,59,07,691/- in the bank account and total sale/gross receipts of Rs.1,02,65,196/-. On the basis of the investigation report, the respondent formed an opinion that Rs.98,86,61,322/- was required to be treated as unexplained income. The petitioner objected that the relevant aspects had already been examined during the original scrutiny assessment and that there was no new tangible material, not previously available to the Assessing Officer, justifying reopening under Section 147.
