9911796707
TMI Blog2019 (3) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... ne into the issue and therefore, in effect and substance, the respondent seeks to sit in appeal over the opinion expressed by his predecessor, and, therefore, the assumption of jurisdiction on the part of the Assessing Officer under section 147 of the Act, which is based on a mere change of opinion, is invalid - Decided in favour of assessee. - R/SPECIAL CIVIL APPLICATION NO. 16276 of 2018 - - - Dated:- 5-2-2019 - MS HARSHA DEVANI AND DR A. P. THAKER, JJ. For The Petitioner (s) : MR MANISH J SHAH (1320) For The Respondent (s) : MRS MAUNA M BHATT (174) ORAL JUDGMENT ( PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Leave to amend the prayer clause. 2. Rule. Mrs. Mauna Bhatt, learned Senior Standing Counsel waives service of notice of rule on behalf of the respondent. Having regard to the controversy involved in the present case, which lies in a very narrow compass, with the consent of the learned advocates for the respective parties, the matter was taken up for final hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 31.3.2018 issued by the respondent under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons recorded for reopening the assessment to point out that the Assessing Officer seeks to reopen the assessment on the ground that the assessee had debited ₹ 30,10,000/- on account of management training expenses incurred for post-graduate programme in management by Indian School of Business, Hyderabad, of Shri Swar Digant Shah, Director of the company, on the ground that such expenditure is of personal nature and not an expenditure for business purpose. It was submitted that the Assessing Officer has stated therein that during the course of assessment proceedings, while the assessee had submitted details in respect of the said post-graduate programme, it had not submitted any details proving nexus between the expense of course fees and the relevance of the same wholly and exclusively for business purpose. Mr. Shah referred to the income tax return filed by the petitioner to point out that under the heading of Other Expenses , the petitioner has specifically shown, management training expenses of ₹ 30,10,000/-. It was pointed out that during the course of scrutiny assessment, the Assessing Officer had called for various details from the petitioner in respect of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anding Counsel for the respondent has placed reliance upon the averments made in the affidavit-in-reply filed on behalf of the respondent to submit that the reopening is not based on a mere change of opinion, inasmuch as, the petitioner has failed to furnish evidence to prove that the expenses incurred for the post-graduate programme is wholly and exclusively for business purpose. 9. In the aforesaid backdrop, reference may be made to the reasons recorded by the Assessing Officer for reopening the assessment, which read as under:- REASONS FOR ISSUE OF NOTICE U/S. 148 OF THE ACT In this case, the return of income was filed on 28/09/2013 declaring total income at ₹ 64,36,610/-. The assessee filed revised return of income declaring total income ₹ 76,19,380/-. Assessment u/s. 143(3) of the Act was completed on 01/03/2016 determining assessed income at ₹ 76,19,380/-. 2. Security of Note 19 of profit and loss account revealed that the assessee had debited ₹ 30,10,000/- on account of management training expense the said expenditure were incurred for Post Graduate programme in management by Indian School of Business, Hyderabad of Shri Swar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion dated 26.2.2016, the petitioner stated thus: 4. Shri Swar Digant Shah came in April 2013 after undergoing the training at ISB, Hyderabad and also after under going the practical training in Germany. He is working for the company so nice that the turnover of the company has increased considerably because of his hard efforts as can be seen from the figures of turnover given in the following table: Assessment Year Rs. in lacs 2013-2014 857 2014-2015 980 2015-2016 1104 Till 31-03-2016 1200 From the above, it may please be seen that in the course of three years, the turnover has increased from ₹ 857 lacs to ₹ 1200 lacs gradually year by year. This speaks of the value of services and his training at ISB, Hyderabad. 5. It may pleased be noted that the education qualification of Shri Swar Digant Shah is B.E. in Computer Engineering from Nirma Institute of Technology, Ahmedabad and MS in Computer Engineering from San Jose St ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
