Gujarat High Court
Priti Paras Savla vs Income Tax Officer Ward (3)(2)(4) on 27 November, 2018
Author: Harsha Devani
Bench: Harsha Devani, A. P. Thaker
C/SCA/17756/2018 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 17756 of 2018
===============================================================
PRITI PARAS SAVLA
Versus
INCOME TAX OFFICER WARD (3)(2)(4)
===============================================================
Appearance:
MR RK PATEL, ADVOCATE for MR DARSHAN R PATEL(8486) for the
PETITIONER
for the RESPONDENT(s) No. 1
================================================================
CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI
and
HONOURABLE DR.JUSTICE A. P. THAKER
Date : 27/11/2018
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. Mr. R. K. Patel, learned advocate for the petitioner invited the attention of the court to the reasons recorded for reopening the assessment, to point out that the assessment is sought to be reopened in respect of long term capital gain from Kuvam International Fashion Limited to the tune of Rs.1,80,52,878/- during the year under consideration. It was pointed out that earlier, proceedings had been initiated under section 147 of the Income Tax Act, 1961 by reopening the assessment of the year under consideration based upon the information received from Pr. DIT (Inv), Ahmedabad through CCIT-8, Mumbai containing the information in respect of bogus long term capital gain provided by two companies of KGN Group. It was pointed out that during the course of the assessment proceedings, all the details with respect to the Page 1 of 3 Downloaded on : Mon Sep 06 10:04:52 IST 2021 C/SCA/17756/2018 ORDER transactions were placed before the Assessing Officer, who has threadbare examined the same.
2. The attention was invited to the reply dated 13.12.2017 to the notice dated 05.12.2017 under section 142(1) of the Act for assessment year 2011-12 (Annexure "E" to the petition), to point out that the computation of the long term gain specifically included Kuvam International Fashion Limited (Earlier known as Arya Global Shares and Securities Limited) in respect of long term capital gain of Rs.1,80,52,878/-. It was pointed out that after examining all the material before him, by an order dated 26.12.2017, the Assessing Officer framed assessment under section 143 read with section 147 of the Act, whereby he has treated a total amount of Rs.22,72,895/- shown by the petitioner assessee as LTCG from sale of shares of KGN Industries Limited as bogus and the same is added to the total income under section 68 of the Income Tax Act, 1961. It was pointed out that therefore, on the same grounds, the Assessing Officer seeks to reopen the assessment of the petitioner. It was submitted that the reopening of assessment which is based upon a mere change of opinion, is without authority of law. It was further argued that the sanction under section 151 of the Act has also not been produced despite the request made by the petitioner and therefore also, the reopening is not valid. The learned advocate for the petitioner further reiterated the grounds raised by the petitioner in the objections submitted against the reopening of assessment.
3. Having regard to the submissions advanced by the learned advocate for the petitioner, Issue Notice returnable on 7th January, 2019. By way of ad-interim relief, the Page 2 of 3 Downloaded on : Mon Sep 06 10:04:52 IST 2021 C/SCA/17756/2018 ORDER respondent is permitted to proceed further with the assessment; he, however, shall not pass the final order without the permission of this court.
Direct Service is permitted.
(HARSHA DEVANI, J) (A. P. THAKER, J) B.U. PARMAR Page 3 of 3 Downloaded on : Mon Sep 06 10:04:52 IST 2021