Gujarat High Court
Anilkumar Bhikhabhai Virani vs The Asst. Commissioner Of Income Tax on 26 December, 2018
Author: Harsha Devani
Bench: Harsha Devani, A. P. Thaker
C/SCA/20595/2018 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 20595 of 2018
==========================================================
ANILKUMAR BHIKHABHAI VIRANI
Versus
THE ASST. COMMISSIONER OF INCOME TAX
==========================================================
Appearance:
MS NIYATI K SHAH(2935) for the PETITIONER(s) No. 1
for the RESPONDENT(s) No. 1,2
==========================================================
CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI
and
HONOURABLE DR.JUSTICE A. P. THAKER
Date : 26/12/2018
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) Ms.Niyati Shah, learned advocate for the petitioner has invited the attention of the Court to the reasons recorded for reopening of the assessment. It is submitted that reassessment of the petitioner has been sought to be reopened on the ground that for Assessment Year 2011-12, M/s.Aum Developers had no profit and no income was shown and as such, there was no profit distribution among the retiring partners and not even the continuing partners. The attention of the court is invited to the circular No.08/2014 dated 31st March, 2014 to point out that the Central Board of Direct Taxes has clarified that the entire profit credited to the partners' account in the firm would be exempted from tax in the hands of such partners, even if the income chargeable to tax in the case of the firm becomes nil. It was submitted that in Page 1 of 2 C/SCA/20595/2018 ORDER the light of the aforesaid, Assessing Officer could not have formed the belief that any income chargeable to tax has escaped assessment in the case of the petitioner.
Having regard to the submissions advanced by the learned advocate for the petitioner, Issue Notice returnable on 12th February, 2019. By way of ad-interim relief, respondent is permitted to proceed further pursuant to the impugned notice; he, however, shall not pass the final order without the prior permission of this Court. Direct service is permitted.
(HARSHA DEVANI, J) (A. P. THAKER, J) ASHISH M. GADHIYA Page 2 of 2