Datta Projects Private Limited Vs ACIT (Gujarat High Court)
The Gujarat High Court considered a writ petition challenging the notice dated 30.03.2019 issued under Section 148 of the Income Tax Act, 1961 for reopening the assessment of the petitioner for Assessment Year 2012-13.
The petitioner had filed its return declaring total income of Rs.39,18,410/-, which was accepted in scru-tiny assessment under Section 143(3) on 25.02.2015. The assessment was subsequently reopened by a notice under Section 148. After receiving the recorded reasons, the petitioner filed objections seeking withdrawal of the reassessment proceedings. The objections were rejected by order dated 16.11.2019.
The petitioner contended that the reopening was founded solely on findings recorded during a survey concerning its group concern, M/s. Skyline Enterprise. According to the petitioner, the respondent in-ferred that because Skyline Enterprise had allegedly collected on-money in respect of its project “Sai Shangrila,” the petitioner must also have received cash on-money and evaded tax. The petitioner argued that there was no positive evidence showing receipt of on-money by it, that the belief of escaped in-come rested entirely on presumptions, and that the estimation of escaped income at 50% of the ac-counted amount was also based on assumptions. It further submitted that reopening beyond four years from the end of the relevant assessment year was impermissible in the absence of any failure to make a true and full disclosure of material facts.
