TaxTMI 
TaxTMI 
2016 (12) TMI 871
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....8 of the Income Tax Act dated 03.09.2004, by which, the Assessing Officer has sought to reopen the assessment for AY 200001 under Section 147 of the Income Tax Act. 2.0. The facts leading to the present Special Civil Application in nutshell are as under: 2.1. That the petitioner company incorporated under the Companies Act (hereinafter referred to as the "assessee") filed its return of income declaring total income of Rs. 8,41,95,356/. The said return was processed and accepted under Section 143(1) of the Act on 28.02.2001. It appears that thereafter the audit party raised audit objection with respect to the gross receipt shown in P & L account with respect to subsidy amount received from the Government. That having received the remar....
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....tstanding subsidy during AY 200001 pertaining to earlier years; (3) Therefore, the objections raised by the Audit Party cannot survive more so when there was no discrepancy in the accounting system of the assessee with regard to the accounting of subsidy. It was stated that therefore, the observation of the audit report may be treated as complied with and no remedial action was called for on the merits of the case. 2.2. That after a period of approximately 18 months, Assessing Officer issued the impugned notice dated 03.09.2004 under Section 148 of the Act, reopening the assessment for AY 200001. That in reply to the aforesaid notice, the assessee vide letter dated 28.09.2004, asked the Assessing Officer to treat the original return file....
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....e assessee through its authorized representative raised various objections both on jurisdiction and on merits against the reopening of the assessment, vide communication / letter dated 09.03.2005. It was the specific case on behalf of the assessee that assessment is reopened solely on the objection raised by the audit party and that there is no independent satisfaction of the Assessing Officer that income has escaped assessment. The detailed objections were also made on merits. Therefore, it was requested to drop the reassessment proceedings. That vide letter dated 08.09.2005, the Assessing Officer disposed of the objection raised by the assessee and inter alia held that reopening is valid and within the jurisdiction. That thereafter, vide ....
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...., II, Surat that the objections raised by the Audit Party do not survive more so when there is no discrepancy in the accounting system of the assessee with regard to the accounting of subsidy. It is submitted that no remedial action was called for on the merits of the case. It is submitted that despite in the objections, it was specifically pointed out that solely relying upon the audit objection raised by the audit party and without any independent opinion formed by the AO that the income has escaped assessment, by disposing of the objection, the Assessing Officer has not deliberately not dealt with the same. 3.1. It is further submitted by Shri Soparkar, learned counsel for the petitioner that notice can be issued under Section 148 of ....
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....r of Income Tax, Gandhidham Range reported in (2015) 60 Taxmann. Com 29(Gujarat), it is requested to allow the present Special Civil Application by quashing and setting a side the impugned notice. 4.0. Shri Nitin Mehta, learned counsel has appeared on behalf of the Revenue. At the outset, it is required to be noted that though the present Special Civil Application is of the year 2006 till date no reply has been filed either opposing the present petition and / or disputing the averments made in petition. Shri Mehta, learned counsel for the revenue has vehemently submitted that the original assessment order was under Section 143(1) of the Act and therefore, the Assessing Officer had no occasion to consider and / or go through in detailed t....
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....been denied or disputed. From the material on record, it appears that after audit objections were received, the Additional Commissioner of Income Tax, Range4, Surat asked the necessary particulars / documentary evidence on the objection raised by the audit party. The assessee furnished necessary documentary evidence including books of accounts etc. and after having satisfied with respect to the accounting system of the assessee with regard to the accounting of the subsidy, Additional Commissioner of Income Tax, Range 4Surat, communicated to the Commissioner of Income Tax, II, Surat that the objections raised by the Audit Party do not survive and / or observation made by the audit party may be treated as complied with and no remedial action ....