TaxTMI 
TaxTMI 
2017 (1) TMI 1378
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....2009-10 has escaped the assessment within the meaning of Section 147 of the Act. [2.0] The facts leading to the present Special Civil Application is a nutshell are as under; [2.1] The petitioner - assessee is a builder and is engaged in the business of development of properties. The petitioner - assessee filed his return of income for the Assessment Year 2009-10 declaring the total income at loss of Rs. 57,04,944/-. It is the case on behalf of the petitioner - assessee that the return was processed but no assessment was framed originally. [2.2] Thereafter, the petitioner - assessee has been served with the notice under Section 148 of the Act dated 30/03/2016 by which the Assessing Officer has sought to reopen the assessment for the Assessment Year 2009-10. On the request made by the petitioner - assessee, the petitioner - assessee has been served with the reasons recorded for reopening the assessment. The reasons recorded for reopening the assessment reads as under; "Based on the information received in the case of the assessee that, one Shri Kamal Madhubhai Gohil had entered into a purchase transaction with M/s. Palitana Sugar Mills Pvt. Ltd for purchase of land admeasuring 4....
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.... same piece of land. It was stated in the said sale deed that Sanghavi Brothers received Rs. 75,51,000/- and assessee received Rs. 8,44,69,500/- totaling Rs. 9,20,20,500/- from purchaser M/s. Applewoods Estate Pvt. Ltd. It is noticed that Kamal M. Gohil has issued a cheque of Rs. 2,00,00,000/- to M/s. Vraj Reality on 09/05/2008. Bank statement of M/s Vraj Reality procured from Citi Bank. Summons under Section 131 of the Act was issued to Partner of M/s. Vraj Reality. In his statement Shri Rajesh Shah, Partner of M/s. Vraj Reality stated that Rs. 2 Crores was received by him from ISCON Group for purchase of a land situated at Baroda, however, funds were returned as ISCON Group chose another concern to execute sale deed of that land. He also stated that Kamal M. Gohil is not known to him and instruments for credit and debit of funds were handed-over to them by ISCON Group key person Shri Amit Gupta. Further, it is noticed that Kamal M. Gohil has issued a cheque of Rs. 2,00,00,000/- to M/s. Amit Intertrade Pvt. Ltd. PAN: AAFCA8117L, on 08/08/2008. M/s. Amit Intertrade Pvt. Ltd. is a group concern of ISCON Group and developing ISCON Heights Project at Baroda. The Company has show....
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....d from Shri Kamal M. Gohil, who is the front man of ISCON Group headed by Shri Pravin Kotak and Shri Amit Gupta, vide sale deed dated 20/02/2009 and paid a sum of Rs. 9,20,20,500/- towards purchase of the said land. 4. Thus, from the above facts, it is clear that, the assessee M/s. Applewood Estate Pvt. Ltd during the previous year relevant to A.Y. 2009-10 has acquired a piece of land admeasuring 11837 sq mtrs. bearing Block No.131 situated at Sanathal, Taluka Sanand. Thus, I have reason to believe that, there is an escapement of income chargeable to tax in the case of the assessee M/s. Applewood Estates Pvt. Ltd. for A.Y. 2009-10, and therefore, the case is required to be re-opened under Section 147 of the Act, by way of issuing notice under Section 148 of the Act." [2.3] Thereafter the petitioner - assessee raised the objections against reopening of the assessment for the Assessment Year 2009-10 and requested to drop the reassessment proceedings. However, thereafter the Assessing Officer has not agreed with the objections raised by the petitioner - assessee and disposed of the said objections vide order dated 18/11/2016. Hence, the petitioner - assessee has preferred the pre....
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.... Assessing Officer has materially erred in assuming the jurisdiction under Section 147 of the Act. Making the above submissions, it is requested to allow the present petition. [4.0] Shri Manish Bhatt, learned Counsel appearing on behalf of the revenue has vehemently opposed the present petition. It is submitted that in the present case the reopening has been effected based on specific information and more particularly the information received from the ITO Ward No.3(1)(1), Vadodara. It is submitted that after receipt of the said information investigation in the form of discreet field inquiries was carried out in Vadodara and Ahmedabad, which revealed that Shri Kamal M. Gohil was only a front man of ISCON Group. The information also contained the demands made by the ITO 3(1)(1), Vadodara in the form of summons being issued to the Director of M/s. Amit Intertrade Private Ltd. and the said summons have been remained unattended. It is submitted that inquiries were also made with Shri Rajesh Shah, partner of M/s. Vraj Realty. It is submitted that based on the tangible material in the form of information, as aforesaid, specific opinion was formed after independent application of mind tha....