TaxTMI 
TaxTMI 
2018 (12) TMI 131
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....dvocates for the parties, the matter is taken up for final hearing today. 3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 23.03.2018 issued by the respondent under section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") seeking to reopen its assessment for assessment year 2012- 13. 4. The facts stated briefly are that the petitioner is a Private Limited Company engaged in the business of real estate and development. The petitioner filed its return of income for assessment year 2012-13 on 25.9.2012 declaring total income at Rs. 19,79,739/-. The case was selected for scrutiny and notices under sections 142(1) and 143(2) of the Act came to be issued upo....
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....upon the satisfaction of the Assessing Officer, but is merely based upon the audit objection raised by the audit department. It was contended that an audit objection cannot be the basis for reopening the assessment, more so, when the Assessing Officer has not accepted such audit objection. 6.1 In support of his submissions, the learned advocate placed reliance upon the decision of this court in the case of Jagat Jayantilal Parikh v. Deputy Commissioner of Income Tax, [2013] 355 ITR 400 (Guj.), wherein the court has held that it is a well laid down principle that the Assessing Officer requires to form his own belief at the time of reopening the assessment and while issuing notice of reopening. However, on having noticed certain aspects fro....
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....f the view that the objection raised by the audit party could not be accepted and is required to be dropped. 9. A perusal of the reasons recorded shows that the assessment for the year under consideration is sought to be reopened on the ground that the disallowance of expenditure under section 14A of the Act read with rule 8D of the rules had not been correctly worked out. On the other hand, the Assessing Officer, after considering the audit objections, has not accepted the same has stated that after considering the applicability of section 14A of the Act, he was satisfied with the disallowance made, despite which the impugned notice has been issued seeking to reopen the assessment on the very ground to which he has objected, which is indi....