ZAVERCHAND GAEKWAD LIMITED V. INCOME TAX OFFICER WARD 4 (4)

TAXAP/867/2009

AI Insights

The case involves Zaverchand Gaekwad Limited appealing against the Income Tax Officer Ward 4 (4) concerning the re-opening of an assessment for the Assessment Year 2002-03 under Section 147 of the Income Tax Act, 1961. Additionally, the case questioned the application of Section 55A for determining the Fair Market Value of property as of April 1, 1981. The Income Tax Appellate Tribunal had upheld the Assessing Officer's decision, which was contested in this appeal. The High Court, referencing a precedent set by the Apex Court in the case of Commissioner of Income Tax v. Gauranginiben S. Shodhan Indl., ruled in favor of the assessee regarding the application of Section 55A, leading to the allowance of the appeal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 763460 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 14-09-2022
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax v. Gauranginiben S. Shodhan Indl.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VARUN PATEL
• Assessee Lawyers: BANDISH SOPARKAR
• Keywords: Assessment Year 2002-03; District Valuation Officer; Fair market value; Income Tax; Re-opening of assessment
• Section: 147; 55A

Judgement Text

"C/TAXAP/867/2009 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 867 of 2009 With CIVIL APPLICATION (FIXING DATE OF EARLY HEARING) NO. 1 of 2022 In R/TAX APPEAL NO. 867 of 2009 FOR APPROVAL AND SIGNATURE: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI ============================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ============================================= ZAVERCHAND GAEKWAD LIMITED Versus INCOME TAX OFFICER WARD 4 (4) ============================================= Appearance: MR BANDISH SOPARKAR for MRS SWATI SOPARKAR(870) for the Appellant(s) No. 1 MR.VARUN K.PATEL(3802) for the Opponent(s) No. 1 ============================================= CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI Date : 14/09/2022 ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. In this appeal following substantial question of law has Page 1 of 3 C/TAXAP/867/2009 JUDGMENT DATED: 14/09/2022 been raised :- “1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 147 of the Income Tax Act, 1961, for re-opining of the assessment for the Assessment Year 2002-03. 2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 55A of the Income Tax Act, 1961, to the District Valuation Officer (DVO) for ascertaining the Fair Market Value of the property as on 01.04.1981?” 2. The co-ordinate Bench in the matter of Commissioner of Income Tax v. Gauranginiben S. Shodhan Indl., reported in 367 ITR 238 has answered the substantial question of law framed in the instant appeal, namely in relation to the provisions of Section 55A of the Income Tax Act, 1961. 3. However, the learned counsel appearing for the appellant submits that in light of substantial question of law no. 2 having been answered by this Court in favour of the appellant, he would not press, substantial question of law no. 1 framed in the appeal memorandum as well as by this Court. His submission is placed on record. Page 2 of 3 C/TAXAP/867/2009 JUDGMENT DATED: 14/09/2022 4. Since, substantial question of law framed in this appeal, stands fairly covered in favour of the assessee by judgment of Apex Court in Gauranginiben’s case referred to supra, this appeal is allowed by answering the substantial question of law in favour of the assessee. No orders as to costs. Pending application stands consigned to record as it would not survive for consideration. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 3 of 3 "