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2017 (11) TMI 1085 - HC - Income TaxReopening of assessment - assessee has not filed its return of income for AY 2010-11 - Held that - The petitioner has pointed out that the very basis for issuing the notice is invalid since the petitioner had in fact filed the return whereas the reasons proceed on the basis that no return was filed. The petitioner has produced the necessary documents in addition to making such averments on oath. These averments and supporting evidence the respondent is unable to refute. That being the position, the sole ground for issuing the notice for reopening namely of the petitioner not having filed the return of income is proved to be incorrect. Under the circumstances the reasons lack validity. We are, therefore, inclined to quash the notice even though the return filed by the Assessing Officer was processed under section 143(1) of the Act and no scrutiny assessment was framed. - Decided in favour of assessee.
Issues:
Challenge to notice for reopening assessment for AY 2010-11 based on failure to file return and alleged income escapement. Analysis: The petitioner challenged a notice issued by the Assessing Officer to reopen the assessment for the assessment year 2010-11. The reasons cited for issuing the notice were the non-filing of the return of income by the assessee and the receipt of a significant sum during the reference year. The petitioner contended that the basis for the notice was invalid as they had indeed filed the return, contrary to the assertion made by the Assessing Officer. The petitioner provided supporting evidence and averments to prove the filing of the return, which the respondent failed to refute. Consequently, the sole ground for issuing the notice was found to be incorrect. The Court observed that the reasons provided by the Assessing Officer lacked validity, as it was established that the petitioner had filed the return of income despite the assertion in the notice. The Court, therefore, decided to quash the notice, even though the return filed by the petitioner had been processed under section 143(1) of the Income Tax Act, and no scrutiny assessment had been conducted. Consequently, the impugned notice dated 30.03.2017 was set aside, and the petition was allowed and disposed of.
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