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Gujarat High Court

Gmdc Science And Research Centre vs Income Tax Officer....Opponent(S) on 12 July, 2016

Author: Akil Kureshi

Bench: Akil Kureshi, A.J. Shastri

                 O/TAXAP/411/2016                                               ORDER




                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                TAX APPEAL NO. 411 of 2016

         ==========================================================
                GMDC SCIENCE AND RESEARCH CENTRE....Appellant(s)
                                   Versus
                       INCOME TAX OFFICER....Opponent(s)
         ==========================================================
         Appearance:
         MR MANISH J SHAH, ADVOCATE for the Appellant(s) No. 1
         MRS MAUNA M BHATT, ADVOCATE for the Opponent(s) No. 1
         ==========================================================

          CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
                 and
                 HONOURABLE MR.JUSTICE A.J. SHASTRI

                                     Date : 12/07/2016


                                      ORAL ORDER

(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

1. The appellant-assessee has suggested following questions of law:

"(i) Whether on the facts and in the circumstances of the case and without hearing the assessee on merits, the Tribunal was right in law in deciding the point on merits after having decided that reopening was invalid?
(ii) If the reply of the above question is in the affirmative and against the appellant, whether the Tribunal was right in its interpretation of section 11(1)(a) and holding that the appellant will not be entitled to the deduction of Rs. 1,74,77,343/- in the computation of total income in the hands of the Appellant Trust?"
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HC-NIC Page 1 of 2 Created On Thu Jul 14 02:06:16 IST 2016 O/TAXAP/411/2016 ORDER

2. It can be seen that the Tribunal, by the impugned judgement, held that the notice of reopening is invalid. Having done that by way of abundant caution it appears that the Tribunal had also examined the validity of the additions made by the Assessing Officer during such re-assessment proceedings. It is, in this context, that the assessee has raised above questions.

3. The department had challenged the same judgement of the Tribunal in Tax Appeal No. 437 of 2016 since the Tribunal had invalidated the re-assessment proceedings. The Division Bench of this Court, by an order dated 07.06.2016, rejected such tax appeal. Thus, the Tribunal's view that the reopening of the assessment was invalid is also confirmed by the High Court. In that view of the matter, the secondary question of validity of the additions would become inconsequential. This tax appeal is, therefore, disposed of accordingly. Nothing stated in this order would come in way of the assessee to argue in further assessment years if such a question arise that the addition was not permissible in law.

(AKIL KURESHI, J.) (A.J. SHASTRI, J.) Jyoti Page 2 of 2 HC-NIC Page 2 of 2 Created On Thu Jul 14 02:06:16 IST 2016