Gujarat High Court
Harshaben Vrajlal Patel vs Income Tax Office, Ward 2, Morbi on 19 November, 2019
Author: Harsha Devani
Bench: Harsha Devani, Sangeeta K. Vishen
C/SCA/20304/2019 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 20304 of 2019
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HARSHABEN VRAJLAL PATEL
Versus
INCOME TAX OFFICE, WARD 2, MORBI
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Appearance:
MR B S SOPARKAR(6851) for the Petitioner(s) No. 1
for the Respondent(s) No. 1
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CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI
and
HONOURABLE MS. JUSTICE SANGEETA K. VISHEN
Date : 19/11/2019
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1.Mr. B.S. Soparkar, learned advocate for the petitioner, invited the attention of the court to the reasons recorded for reopening the assessment to point out that the sole ground on which the assessment is sought to be reopened is that as per the information available, the script of Twenty First Century (I) Ltd. was managed and utilised to provide long term capital gain. That on this basis, the Assessing Officer has formed the belief that long term capital gain of Rs.10,56,780/- claimed by the petitioner as exempt under section 10(38) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") is bogus and requires to be taxed in the hands of the petitioner for assessment year 2012-2013.
2.It was pointed out that the petitioner has Page 1 of 2 Downloaded on : Tue Nov 19 23:40:02 IST 2019 C/SCA/20304/2019 ORDER purchased the shares in January, 2004 and sold the same after seven years in 2011 and that therefore, it was not possible that the petitioner has indulged in booking bogus long term capital gain. It was submitted that therefore, the assessment is sought to be reopened on borrowed satisfaction without application of mind and that in fact, no income chargeable to tax has escaped assessment.
3.Having regard to the submissions advanced by learned advocate for the petitioner, issue notice, returnable on 23rd December, 2019. By way of ad-interim relief, further proceedings pursuant to the impugned notice dated 28th March, 2019 issued under section 148 of the Act for assessment year 2012-2013 are hereby stayed.
4.Direct service, is permitted.
(HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) BINOY B PILLAI Page 2 of 2 Downloaded on : Tue Nov 19 23:40:02 IST 2019