JIN BHAKTI TRUST V. INCOME TAX OFFICER, WARD - 5(3)(1)

SCA/4805/2022

AI Insights

The case involves Jin Bhakti Trust, a charitable trust, which filed a petition under Article 226 of the Constitution challenging a notice issued by the Income Tax Officer under section 148 of the Income Tax Act, 1961, for reopening the assessment of the trust for the Assessment Year 2016-2017. The trust had declared 'Nil' income in its return filed on 17.9.2016, which was later scrutinized leading to the reopening notice dated 30.3.2021. The trust raised objections to this notice, which were not responded to, prompting the filing of the petition. The court's decision focused on ensuring that the trust's objections are considered and addressed by the Income Tax authority within a specified timeframe.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 671038 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 29-08-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: M R BHATT; KARAN SANGHANI
• Assessee Lawyers: TUSHAR HEMANI; VAIBHAVI PARIKH
• Keywords: Cash deposits; Charitable Trust; Reopening of assessment; Objections not replied
• Section: 148

Judgement Text

"C/SCA/4805/2022 ORDER DATED: 29/08/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 4805 of 2022 ========================================================== JIN BHAKTI TRUST Versus INCOME TAX OFFICER, WARD - 5(3)(1) ========================================================== Appearance: MR. TUSHAR HEMANI, SR. ADVOCATE, WITH MS VAIBHAVI K PARIKH(3238) for the Petitioner(s) No. 1 MR. M.R.BHATT, SR. ADV. FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1,2 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 29/08/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) In view of the compass of the controversy and having regard to the request and consent of learned advocates appearing for the parties, the petition was taken up for final consideration today. 1.1 Rule, returnable forthwith. Learned advocate Mr. Karan Sanghani for M. R. Bhatt & Co. waives service of Rule on behalf of the respondents. 1.2 Heard learned senior advocate Mr. Tushar Hemani assisted by learned advocate Ms. Vaibhavi Parikh for the petitioner and learned senior advocate Mr. M. R. Bhatt with learned advocate Mr. Karan Sanghani for M. R. Bhatt & Co. for the respondent revenue. Page 1 of 3 C/SCA/4805/2022 ORDER DATED: 29/08/2022 2. By filling this petition under Article 226 of the Constitution, the challenge is directed against notice dated 30.3.2021 issued by the Assessing Officer, Ward 5 (3) (1) Ahmedbad. It is a notice under section 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) seeking to reopen the assessment of the petitioner in respect of Assessment Year 2016-2017. 3. Noticing the basic facts, the petitioner who was a charitable trust filed its return of income in the year under consideration on 17.9.2016, in which ‘Nil’ income was declared. It appears that the return of the petitioner was selected for scrutiny assessment by issuing notice dated 30.3.2021 under section 148 of the Act. 3.1 The petitioner furnished return of income on 13.4.2021 for the year under consideration in response to the notice dated 30.3.2021 and requested for supply of reasons for re-opening. Thereafter, the petitioner raised objections against re-opening by addressing communication dated 10.1.2022, which has remained unanswered. 4. While the detailing of the reasons is not necessary in light of the order being passed by the court, it may be stated that the crux of the reason was that the petitioner trust made large cash deposits during the year under consideration as per the information received by the department from the inside portal. In reply to the notices in that regard, the petitioner appears to have raised certain objections by letter dated 10.1.2022 stating that the reopening was not justified. The primary grievance of the petitioner is that the objections raised by the petitioner against the re-opening notice has not been replied. 5. Learned senior advocate submitted that grievance of the petitioner Page 2 of 3 C/SCA/4805/2022 ORDER DATED: 29/08/2022 would be satisfied if the court requires the authority to appropriately consider and dispose of the objections within stipulated time. Responding to this submission, learned senior advocate for the Income Tax authority submitted that the authorities will look into the objections and dispose of the same within the time the court may direct. 6. In the facts and circumstances of the case, this petition is disposed of by directing the competent authority of the respondent Income Tax authority to consider the objections dated 10.1.2022 filed by the petitioner to the re-opening notice under section 148 of the Act within a period of eight weeks from the date of receipt of the order on its own merits and in accordance with law. 6.1 It is clarified that this court has not gone into the merits of the case of the either side and nor has expressed anything on merits. 6.2 It goes without saying that since the court has not gone into the merits, all the contentions are kept open for the parties to be raised before the authority. 7. This petition is accordingly disposed of. Rule is made absolute in the said terms. (N.V.ANJARIA, J) (BHARGAV D. KARIA, J) C.M. JOSHI Page 3 of 3 "