Ashwamegh CoOperative Housing Society Ltd. v. Dy. CIT & Anr.

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers2013 TaxPub(DT) 0126 (Guj-HC) : (2013) 353 ITR 0413 : (2012) 254 CTR 0362 : (2012) 079 DTR 0449 INCOME TAX ACT, 1961 --Reassessment--Change of opinion Assessment under section 143(3)--The assessment order was passed under section 143(3) and several queries were raised and replies were received from the assessee. After considering replies assessing officer accepted the computation of income made by assessee, which indicated assessee had duly disclosed the very nature of its activities. *Held:* Reopening of assessment by assessing officer was not justified and was merely based on change in opinion. Income Tax Act, 1961 Section 147 In the Gujarat High Court AKiI Kureshi & Haisha Devani, JJ. Ashwamegh Co-Operative Housing Society Ltd. v. Dy. CIT & Anr. Special Civil Appln. Nos.12598, 12600 & 12614 of 2012 A.Y. 2007-08 6 November, 2012 Income-tax Act, 1961, s. 147 In favour of: Assessee Petitioner: R. K. Patel & B. D. Karia Respondent: Paurami B. Sheth JUDGMENT *Akil Kureshi, J.* These petitions arising in common background have been heard together and are being finally disposed of by this common judgment. 2. Petitioners, in all the petitions, have challenged notices issued by the assessing officer under section 148 of the Income Tax Act, 1961 (for short the Act) of the completed assessments. We may notice the facts as emerging from the record of Special Civil Appln. No. 12598 of 2012. 2.1 The petitioner is a co-operative society. For the assessment year 2007-08, the petitioner had filed a return of income along with supporting documents declaring total income of Rs. 37,32,950. Such return was taken by the assessing officer in scrutiny for which purpose he issued notice under section 143(2) of the Act. 2.2 We may notice that in such return, the assessee had disclosed that it had earned income through sale of certain landed properties and treated it as capital gain. After adjusting the expenses and other allowable deductions, the assessee had worked out the capital gain at Rs. 37,32,950 which was the only item of income disclosed by the assessee in the said return. 2.3 During the scrutiny assessment, assessing officer examined such claim. Several queries were raised and replies were received from the assessee. To these queries and replies, we would advert at a later stage. 2.4 Eventually, the assessing officer framed scrutiny assessment under section 143(3) of the Act and accepted the computation of income done by the assessee in the return. In such assessment order dated 21-5-2009, the assessing officer recorded as under : SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0126 (Guj-HC) : (2013) 353 ITR 0413 : (2012) 254 CTR 0362 : (2012) 079 DTR 0449

INCOME TAX ACT, 1961

--Reassessment--Change of opinion Assessment under section 143(3)--The assessment order was passed under section 143(3) and several queries were raised and replies were received from the assessee. After considering replies assessing officer accepted the computation of income made by assessee, which indicated assessee had duly disclosed the very nature of its activities. Held: Reopening of assessment by assessing officer was not justified and was merely based on change in opinion.

Income Tax Act, 1961 Section 147

In the Gujarat High Court

AKiI Kureshi & Haisha Devani, JJ.

Ashwamegh Co-Operative Housing Society Ltd. v. Dy. CIT & Anr.

Special Civil Appln. Nos.12598, 12600 & 12614 of 2012

A.Y. 2007-08

6 November, 2012

Income-tax Act, 1961, s. 147 In favour of: Assessee

Petitioner: R. K. Patel & B. D. Karia

Respondent: Paurami B. Sheth

JUDGMENT

Akil Kureshi, J.

These petitions arising in common background have been heard together and are being finally disposed of by this common judgment.

2. Petitioners, in all the petitions, have challenged notices issued by the assessing officer under section 148 of the Income Tax Act, 1961 (for short the Act) of the completed assessments. We may notice the facts as emerging from the record of Special Civil Appln. No. 12598 of 2012.

2.1 The petitioner is a co-operative society. For the assessment year 2007-08, the petitioner had filed a return of income along with supporting documents declaring total income of Rs. 37,32,950. Such return was taken by the assessing officer in scrutiny for which purpose he issued notice under section 143(2) of the Act.

2.2 We may notice that in such return, the assessee had disclosed that it had earned income through sale of certain landed properties and treated it as capital gain. After adjusting the expenses and other allowable deductions, the assessee had worked out the capital gain at Rs. 37,32,950 which was the only item of income disclosed by the assessee in the said return.

2.3 During the scrutiny assessment, assessing officer examined such claim. Several queries were raised and replies were received from the assessee. To these queries and replies, we would advert at a later stage.

2.4 Eventually, the assessing officer framed scrutiny assessment under section 143(3) of the Act and accepted the computation of income done by the assessee in the return. In such assessment order dated 21-5-2009, the assessing officer recorded as under :