THE COMMISSIONER OF INCOME TAX - V V. VINAY PRINTING PRESS

TAXAP/72/2008

AI Insights

The case revolves around the validity of an assessment order issued by the Assessing Officer after reopening the assessment under Section 148 of the Income Tax Act. The original return of income declared by Vinay Printing Press for the assessment year 1994-95 was processed without any issues. However, upon reopening, the notice under Section 143(2) was issued beyond the permissible time limit, leading to a legal challenge. The CIT(A) and ITAT both found the reassessment invalid due to the delayed notice, a decision which the revenue appealed against in the Gujarat High Court.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 728535 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 21-12-2013
• Assessment Year: misc
• Other Referred Cases: Assistant Commissioner of Income Tax and Anr vs. Hotel Blue Moon and others reported in 321 ITR 362
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SWATI SOPARKAR
• Assessee Lawyers: MAUNA BHATT
• Keywords: Assessment Reopening; Income Tax; Notice validity; Section 143(2)
• Section: 147; 148; 143(3); 143(2); 143(1)

Judgement Text

"O/TAXAP/72/2008 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 72 of 2008 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH ­ sd/­ and HONOURABLE MR.JUSTICE R.D.KOTHARI ­ sd/­ ============================================= 1. Whether Reporters of Local Papers may be allowed to see the judgment ? NO 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ============================================= THE COMMISSIONER OF INCOME TAX ­ V....Appellant(s) Versus VINAY PRINTING PRESS....Opponent(s) ============================================= Appearance: MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1 MRS SWATI SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ============================================= CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE R.D.KOTHARI Date : 21/12/2013 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1.0. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 24.02.2006 passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the “ITAT”) in ITA No.382/AHD/2001 for AY 1994­95, the revenue has preferred the present Tax Appeal to consider the following substantial question of law. Page 1 of 3 O/TAXAP/72/2008 JUDGMENT “Whether the Appellate Tribunal is right in law and on facts in law in confirming the order passed by the CIT(A) holding that as notice u/s. 143(2) was issued after expiry of 12 months, the result order u/s 148 r.w.s 143(1) was bad in law?” 2.0. That the assessee filed return of income for AY declaring total income of Rs.7,60,780/­. The same was processed under Section 143(1)(a) of the Income Tax Act (hereinafter referred to as the “Act”) on 30.12.1994 on the same total income. Thereafter the assessment was reopened by issuing notice under Section 148 of the Act on 14.3.1996. In reply to the said notice, assessee filed return of income on 10.4.1996 declaring total income at Rs.7,60,780/­ i.e. the said total income as shown in the original return of income, the Assessing Officer has completed assessment on 17.3.1998 on a total income of Rs.17,10,502/­ under Section 143(3) r/w Section 147 of the Act. 2.1. Feeling aggrieved and dissatisfied with the order of assessment, the assessee filed appeal before the learned CIT(A) and the learned CIT(A) vide its order dated 28.11.2000 has held that the order passed under Section 143(3) r/w Section 147 of the Act is invalid and consequently quashed and set aside the order passed by the Assessing Officer. While quashing the assessment order, the learned CIT(A) held that the Assessing Officer has issued notice under Section 143(2) of the Act after expiry of the time limit provided in sub­section (2) of Section 143 of the Act. 2.2. Feeling aggrieved and dissatisfied with the order passed by the CIT(A), the revenue preferred appeal before the learned ITAT and by impugned judgment and order, the learned ITAT has dismissed the said appeal. 2.3. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned ITAT, the revenue has Page 2 of 3 O/TAXAP/72/2008 JUDGMENT preferred Tax Appeal to consider the following substantial question law: “Whether the Appellate Tribunal is right in law and on facts in law in confirming the order passed by the CIT(A) holding that as notice u/s. 143(2) was issued after expiry of 12 months, the result order u/s 148 r.w.s 143(1) was bad in law?” 3.0. Heard Ms. Mauna Bhatt, learned advocate for the revenue and Shri B.S. Soparkar, learned advocate for the assessee and perused the impugned judgment and order passed by the learned ITAT as well as learned CIT (A). The short question which is posed for consideration of this Court whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the learned CIT(A) holding that as the notice under Section 143(2) of the Act was issued after a period of 12 months, the resultant order u/s 148 r/w section 143(1) was bad in law. The aforesaid question / issue is now not res intergra in view of the decision of the Hon’ble Supreme Court in the case of Assistant Commissioner of Income Tax and Anr vs. Hotel Blue Moon and others reported in 321 ITR 362. 4.0. Applying the ratio laid down by the Hon’ble Supreme Court in the case of Hotel Blue Moon(Supra)to the facts of the case on hand, it cannot be said that the learned ITAT has committed any error in confirming the order passed by the learned CIT(A), the question raised in the Tax Appeal is held against the revenue. Hence, present appeal deserve to be dismissed and is accordingly dismissed. sd/­ (M.R.SHAH, J.) sd/­ (R.D.KOTHARI, J.) Kaushik Page 3 of 3 "