TaxTMI 
TaxTMI 
2015 (8) TMI 469
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....the interest of the Revenue and by which the petitioner assessee has been called upon and/or required to show cause why the assessment may not be re-framed by making additions as suggested in the said show-cause notice. [1.1] At the outset it is required to be noted that Shri Soparkar, learned Senior Advocate appearing on behalf of the petitioner does not press the prayer challenging the impugned show-cause notice at Annexure-A2 dated 26.11.2014 issued by the Principal Commissioner of Income Tax, Ahmedabad-5 issued under Section 263 of the Act with a liberty to make appropriate submissions before the appropriate Authority who has issued the notice under Section 263 of the Act, if required. He has stated at the Bar that therefore, the present petition be restricted to challenging the notice dated 29.03.2014 issued under Section 148 of the Act by the Assessing Officer to reopen the assessment for AY 2007-08 only. [2.0] The facts leading to the present Special Civil Application and which are necessary for deciding the present Special Civil Application in nutshell are as under: [2.1] That the petitioner assessee who according to the petitioner is a partnership firm and derives incom....
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....uld be with respect to the notice dated 29.03.2014 issued under section 148 of the Act only. [3.0] Shri Soparkar, learned Counsel appearing on behalf of the petitioner has vehemently submitted that the notice under section 148 of the Act is absolutely bad and invalid inasmuch as it was at the instance of the audit party. It is submitted that as the initiation of the reassessment proceedings itself is / was bad in law and invalid, the subsequent reassessment order also cannot be sustained and the same deserves to be quashed and set aside. [3.1] Shri Soparkar, learned Counsel appearing on behalf of the petitioner has further submitted that at the time when the reassessment proceedings were initiated by issuing the notice under section 148 of the Act, there was no tangible fresh material except the incorrect audit objection regarding which even the Assessing Officer was not convinced and the objection was not accepted and was ultimately dropped. It is submitted that in these circumstances the initiation of reassessment proceedings under section 147 of the Act would be bad in law. It is further submitted by Shri Soparkar, learned Counsel appearing on behalf of the petitioner that eve....
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.... Mrs. Bhatt, learned Counsel appearing on behalf of the Revenue has vehemently submitted that in the facts and circumstances of the case, now it is not open for the petitioner to challenge the notice under Section 148 of the Act and it is not open for the petitioner now to challenge the initiation of the reassessment proceedings. [4.1] It is submitted that as such after the notice under section 148 of the Act, the petitioner participated in the reassessment proceedings without raising any objection whatsoever with respect to the initiation of the reassessment proceedings. It is submitted that not only that, thereafter even the reassessment order has been passed. It is submitted that even at that stage also, the petitioner did not thought it fit to challenge the initiation of the reassessment proceedings. It is submitted that only thereafter when in exercise of powers under section 263 of the Act, the order of reassessment is taken under revision as it is found that the reassessment order is absolutely without application of mind and prejudicial to the interest of Revenue and only thereafter and having been served with the notice under Section 263 of the Act, now the petitioner ha....
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....AA of the Act the AY 200708 was the first year. No scrutiny notice was issued and the AO accepted the return filed by the petitioner assessee by sending the intimation under Section 143(1) of the Act and without any further inquiry in detail and/or even any discussion on the issue with respect to the exemption claimed under section 10AA of the Act, and accepted the return and allowed the exemption under Section 10AA of the Act claimed by the assessee. That by notice dated 29.03.2014, the assessment for AY 200708 was reopened. That the petitioner assessee participated in the reassessment proceedings, initiated pursuant to the aforesaid notice dated 29.03.2014. At this stage it is required to be noted that the petitioner at that stage did not challenge the initiation of the reassessment proceedings and/or even the notice under Section 148 of the Act and he participated in the reassessment proceedings without raising any objection whatsoever. That the Assessing Officer by order dated 25.06.2014 dropped the assessment proceedings for AY 200708, pursuant to the notice under Section 148 of the Act on 29.03.2014, by a one line order which reads as under: "Order dropping reassessment proc....
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....the reassessment order dated 25.06.2014 is a one line order reproduced hereinabove and there is no application of mind by the Assessing Officer with respect to the issue / claim under Section 10AA of the Act claimed by the assessee and which was accepted by the Assessing Officer earlier. [5.3] At this stage it is also required to be noted that AY 2007-08 was the first year with respect to claim under Section 10AA of the Act and the Assessing Officer without any further discussion and/or considering the exemption claimed under Section 10AA of the Act in detail accepted the return filed by the assessee and sent the intimation under Section 143(1) of the Act. There was no scrutiny assessment under Section 143(3) of the Act at the time of original assessment. That is how the assessment for AY 2007-08 was reopened for which the notice under Section 148 of the Act dated 29.03.2014 was issued. However, again without any application of mind by the Assessing Officer and without any further discussion with respect to the exemption under Section 10AA of the Act claimed by the assessee and/or any further discussion on the aforesaid issue, by passing one line order the Assessing Officer has dr....