Sanjiv Dhireshbhai Shah Vs ITO (Gujarat High Court)
Section 148 Reassessment Quashed as Beyond Four Years and Based on Change of Opinion: Gujarat HC
The Gujarat High Court heard a writ petition challenging a notice dated 30.03.2019 issued under Section 148 of the Income-tax Act, 1961 for Assessment Year (AY) 2012-13. With the consent of both parties, the matter was taken up for final hearing.
The Court referred to its earlier interim order dated 21.10.2019, whereby it had granted ad-interim relief restraining the Revenue from proceeding further pursuant to the impugned notice. At that stage, it had been noted that the Assessing Officer sought to reopen the assessment on the ground that the petitioner had claimed exempt long-term capital gains of ₹1,74,34,398 and exempt dividend income of ₹18,09,019 without any disallowance of expenditure under Section 14A read with Rule 8D(2). During the original scrutiny assessment, the Assessing Officer had issued a notice under Section 142(1) calling for details of the exempt dividend income, justification for non-disallowance under Section 14A read with Rule 8D(2), and supporting evidence for the claim of exemption under Section 10(38) relating to long-term capital gains. After considering the petitioner’s explanation, the Assessing Officer completed the assessment under Section 143(3), allowing the claims.
