2026 (7) TMI 1248

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....er Section 148 of the Income Tax Act, 1961 (for short 'the Act') for reopening the assessment for Assessment Year (A.Y) 2012-2013. FACTS OF THE CASE 2. The petitioner was originally engaged in the business of manufacturing wire harnesses. The petitioner-company discontinued its business operations with effect from 02.02.2009 and, thereafter, ceased to be a going concern. Upon closure of its business, the petitioner decided to dispose of its assets. Accordingly, during the Assessment Year 2011-12, it entered into an agreement for sale of its land, building, plant and machinery, and furniture and fixtures for a total consideration of Rs. 7.30 crores. Subsequently, during the Assessment Year 2012- 13, the petitioner executed the sale dee....

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....utation of capital gains formed the subject matter of scrutiny and was duly examined by the Assessing Officer before framing the assessment under Section 143(3) of the Act. 2.2 Thereafter, the respondent issued the impugned notice dated 28.03.2019 under Section 148 of the Act seeking to reopen the assessment for the Assessment Year 2012-13. The reasons recorded for reopening the assessment were supplied to the petitioner on 22.05.2019. The petitioner, by its letter dated 25.07.2019, filed detailed objections challenging the assumption of jurisdiction as well as the proposed reassessment on facts and in law, and requested the respondent to drop the reassessment proceedings. However, by order dated 30.07.2019, the respondent rejected the o....

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....e personal hearing, to which, the petitioner responded by his reply dated 24.12.2014 and 07.01.2015. Hence, it is urged that the impugned Notice may be quashed and set aside. SUBMISSIONS ON BEHALF OF RESPONDENT 4. Per Contra, learned Senior Standing Counsel Mr. Aaditya Bhatt while referring to the contents of the affidavit-in-reply filed by the respondent has submitted that the reasons recorded clearly justify the reopening of the assessment. It is submitted that the Assessing Officer noticed that the transactions done by the petitioners were not exibited in profit and loss account and that even in cash flow statement, only the receipt of cash of Rs. 7.30 crores is exhibted. It is submitted that assessee claimed to have sold the alleg....

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....ard to capital gain has already been justified by the petitioner and accepted by the Assessing Officer by passing the Assessment Order on 08.01.2015, under Section 143(3) of the Act. Upon a scrutiny of the returns which has been placed on record, we find that the petitioner was specifically called upon to explain the aspect of capital gains and from the balance sheet, it is noticed by us that in the balance sheet the petitioner had already clarified about the fixed assets held for sale along with the cash flow from investing activities. The petitioner has also furnished the computation of capital gain as per revised return of income and a copy of stamp duty and the order in respect of valuation of land and building and a copy of relevant Ci....