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TMI Blog2018 (5) TMI 1691X X X X Extracts X X X X X X X X Extracts X X X X ..... SAD, JUDICIAL MEMBER For The Appellant : Ms. Aparna Agarwal, CIT-D.R. For The Respondent : Shri Aseem L. Thakkar, A.R. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Revenue against the appellate order of the Commissioner of Income Tax(Appeals)-6, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)- 6/77/13-14 dated 30/10/2015 arising in the assessment order passed under s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 27/01/2014 relevant to Assessment Year (AY) 2006-07. 2. The Revenue has raised following grounds of appeal: i) The ld CIT(A) has erred in law and on facts in quashing the order reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings were also initiated u/s 147 of the Act for the assessment year 2007-08. The assessee challenged the same under Article 226 of the Constitution of India before the Hon ble Gujarat High Court, which was quashed by the Hon ble Court in special Civil Application No.13933 of 2014 vide order dt. 8th July, 2015. The relevant extract of the order is reproduced below: In view of this settled legal propositions, we are of the opinion that the respondent could not have issued impugned notice to the petitioner subject to suppressed sale transaction to income. In our opinion, impugned notice is inherently illegal and invalid and, therefore, it cannot be sustained for the aforesaid reasons. We are inclined to accept this petition and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly levied. Now the department by impugned notice wants to levy tax on the whole amount of suppressed sale transaction to the tune of ₹ 7,98,68,610/- and not on gross profit earned by the assessee on the sale transaction. This Court had an occasion to examine the issue as to whether entire sale transaction can be added to the income or not. In the case of Commission of Income Tax Vs. President Industries (supra) relied upon by Mr. Soparkar, ld. advocate, wherein it is observed as under: Having perused the assessment order made by the AO, the order made by the Commissioner of Incometax( Appeals) and the Income-tax Appellate Tribunal, we are satisfied that the Tribunal was justified n rejecting the application under section 256( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued impugned notice to the petitioner subject to suppressed sale transaction to income. In our opinion, impugned notice is inherently illegal and invalid and therefore, it cannot be sustained for the aforesaid reasons. We are inclined to accept this petition and accordingly the petition succeeds and is hereby allowed. The impugned notice dated 20-3-2014 issued by the respondent is hereby quashed and set aside. Rule is made absolute. No order as to costs. 8. I have carefully considered the reasons recorded for reopening by the A.O. in A.Y. 2006-07 and A.Y. 2007-08. It is found that the A.O. has recorded exactly same reasons and satisfaction based on the same facts as recorded in A.Y. 2007-08. Since the facts and circumstances are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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