TaxTMI 
TaxTMI 
2026 (7) TMI 1417
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....oryaraj Enterprise (Prop. Satyajitsinh Rajendrasinh Gohil)". At the beginning of the year under consideration, there was a credit balance of Rs. 1,00,000/- of the said party in books of accounts. At the end of the year under consideration, there was a debit balance of Rs. 6,47,201/- i.e. such sum was receivable from the said party. The said balance duly appears in the schedule in respect of "Sundry Debtors" forming part of Audited Annual Accounts. 2.1 The case of the petitioner for the year under consideration was selected for scrutiny. Various details and information were called for by then Assessing Officer including the details pertaining to "sundry debtors". The petitioner vide letter 20.02.2015, furnished details pertaining to the sundry debtors wherein details pertaining to "Shoryaraj Enterprise" were also mentioned. 2.2 The then Assessing Officer, after threadbare examining the details so furnished by the petitioner, consciously chose not to make any addition in respect of transactions entered into with "M/s. Shoryaraj Enterprise" while framing assessment under Section 143(3) of the Act vide order dated 13.03.2015. After a period of almost six years from the end of the....
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....ed in the impugned notice since perusal of the ledger of M/s. Shoryaraj Enterprise would reveal that at the beginning of the year under consideration, there was a credit balance of Rs. 1,00,000/- of the said party in the books of accounts, whereas at the end of the year under consideration, there was a debit balance of Rs. 6,47,201/- i.e. the sum receivable from the said party. It is submitted that this implies that the petitioner had advanced certain sum to M/s. Shoryaraj Enterprise, out of which Rs. 6,47,201/- was to be recovered from the said party at the end of the year. Thus, it is submitted that in fact there is no escapement of any income chargeable to tax. 3.3 Further, it is submitted that the assessment for the year under consideration was framed under Section 143(3) of the Act. It is submitted that in the scrutiny assessment, the petitioner had clarified the details pertaining to sundry debtors which formed part of the audited annual accounts, and after such clarification was tendered by the petitioner, the Assessing Officer framed the assessment order under Section 143(3) of the Act vide order dated 13.03.2015. Thus, after threadbare examination of details so furnishe....
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....at the present writ petition may not be entertained, at this stage, and the petitioner may be relegated to face the assessment proceedings. ANALYSIS AND OPINION : 5. We have heard the learned advocates appearing for the respective parties at length and perused the documents on the record. The established facts from the pleadings and from the record is that the petitioner for the financial year 2011-12 had carried out certain transactions with M/s. Shoryaraj Enterprise. The return of the income was selected for scrutiny assessment and the petitioner was called upon to furnish various details and information pertaining to sundry debtors which formed part of the audited annual accounts and the transactions with M/s. Shoryaraj Enterprise. The petitioner furnished its ledgers and all the information to the Assessing officer and after threadbare examining the details so furnished by the petitioner the Assessing Officer framed the assessment order under Section 143(3) of the Act vide order dated 13.03.2015. After almost period of six years the respondent issued a notice on 28.03.2019 under Section 148 of the Act seeking to reopen the assessment for the year 2012-13. The petitioner f....
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....ssing Officer in his reason should state that the escaped income is likely to be Rs. 1 Lakh or more so that the Chief Commissioner or the Commissioner may record his satisfaction. The sanctioning authority must be aware that it has exercised power of extended period of limitation under 149(1) (b) of the Act. Exception has been carved out by clause (b) to section 149(1) in respect the income chargeable to tax which has escaped assessment, amounts to Rs. 1 Lakh or more. To fall within exception clause the relevant facts should have been recorded by the Assessing Authority in its order while recording the reason so that a sanctioning authority may apply its mind to the proposition while granting the sanction. xxx 15. The only point urged and pressed before us is whether in absence of anything in the reasons recorded to suggest that the income chargeable to tax which has escaped the assessment is Rs. one lakh or more having not been mentioned the reassessment notice given after four years of the close of the assessment order is valid or not. 16. For the reasons given above, we find sufficient force in the argument of the learned counsel for the petitioner tha....