ITO Vs Kayathwal Estate Private Limited (Supreme Court of India)
The Supreme Court dismissed the Special Leave Petition filed by the Revenue against the Gujarat High Court’s decision quashing the reassessment proceedings and notice issued under Section 148 of the Income Tax Act, 1961 in the case of Kayathwal Estate Pvt. Ltd. The Supreme Court held that, during the scrutiny assessment under Section 143(3), the Assessing Officer had specifically asked for details regarding the unsecured loan taken by the assessee, the assessee had furnished those details, and the Assessing Officer thereafter passed the assessment order. In these circumstances, the Supreme Court held that it could not be said that there was any suppression on the part of the assessee in not disclosing true and correct facts. The Supreme Court also noted that the reassessment proceedings had been initiated beyond four years and held that the High Court was absolutely justified in quashing the reassessment proceedings and notice under Section 148.
Read HC Judgment in this case: Gujarat HC Quashes Reopening Beyond Four Years Without Failure to Disclose Material Facts
Factual Background
Kayathwal Estate Pvt. Ltd., a Private Limited Company, filed its return of income for A.Y. 2012-13 on 24.09.2012. The return was initially processed under Section 143(1) and the case was thereafter selected for scrutiny assessment.
