2024 (9) TMI 153

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Kalpana K. Raval for the respondent. 2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Sanghani waives service of notice of rule for the respondent. 3. Having regard to the controversy involved which is in a narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 27.03.2019 issued under section 148 of the Income Tax Act, 1961 [for short 'the Act, 1961'] for reopening the assessment for the Assessment Year 2012-13. 5. The petitioner is a Partnership Firm regularly assessed for the profits. The petitioner filed return of income for Assessment Year ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me chargeable to tax for AY 2012-13 has escaped assessment within the meaning of Section 147 of the IT Act." 8. The petitioner filed objection by letter dated 21.06.2019 which was disposed of by the respondent-Assessing Officer by order dated 21.010.2019. The petitioner being aggrieved by the impugned notice has preferred this petition. 9. Learned advocate Mr. Darshan Patel for the petitioner submitted that the petitioner is engaged in the business of construction and hence, for the year under consideration, the petitioner has shown the percentage of the work-in-progress as a profit for the year and filed return of income. 9.1 It was submitted that during the course of regular assessment, the petitioner furnished the details sought....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....disclosure during the original assessment proceedings as the return of income filed by the petitioner does not disclose the basis of computation of profit for revenue recognition and work-in-progress. It was submitted that in the audit report also, the auditor did not mention the method used for revenue recognition from the project and valuation of work-in-progress. 10.1 Learned Senior Standing Counsel Mr. Sanghani also pointed out from the reply dated 22.08.2014 in response to the query raised during the regular assessment to submit that assessee has failed to disclose any break up of work in progress or direct construction cost and therefore, there is a failure on the part of the petitioner to fully and truly disclose the material fact....