Jayant Security And Finance Ltd. Vs ACIT (Gujarat High Court)
Gujarat High Court has dismissed a petition filed by Jayant Security And Finance Ltd. challenging a notice issued by the Assistant Commission-er of Income Tax (ACIT) to reopen the assessment for the Assessment Year 2010-2011. The company had contested the validity of the notice dated March 31, 2017, which sought to revisit its tax assessment for the said year.
The case revolves around the reassessment of the petitioner’s income for AY 2010-2011. Jayant Security And Finance Ltd., a company registered under the Companies Act, 1956, had originally filed its return of income on September 23, 2010, declaring a ‘Nil’ income. This return underwent scrutiny by the Assessing Officer (AO), who also examined certain loans taken by the assessee. Following this scrutiny, the AO passed an assessment order on March 8, 2013, accepting the returned income.
The present dispute arose when the AO issued a notice under Section 148 of the Income Tax Act, 1961, seeking to reopen the assessment for the same assessment year. The grounds for reopening, as recorded by the AO, were based on information received from the Deputy Commissioner of Income Tax-1, Bhilaspur (C.G.). This information indicated that Jayant Security And Finance Ltd. had received advances totaling Rs. 10,25,50,000 from M/s. East West Finvest India Limited during the Financial Year 2009-10, relevant to AY 2010-11.
