MURLIBHAI FATANDAS SAWLANI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner is an individual and had filed return of income for assessment year 2008 -2009. Such return was accepted under Sec. 143(1) of the Income Tax Act, 1961 ("the Act" for short) without scrutiny. The Assessing Officer issued impugned notice dated 21.9.2015 under Sec. 148 of the Act seeking to reopen such assessment. At the request of the petitioner, he also supplied reasons for issuing such notice which reads as under:

(2.) During F.Y. 2007 -08 relevant to A.Y. 2008 -09, company had given advance of Rs. 1,00,00,000/ - to Shri Murlibhai Fatandas Sawlan as "advance to suppliers" and the balance is Still continuing till A.Y. 2013 -14. As the advance given was remained unchanged till A.Y. 2013 -14 hence it is concluded that advances given to Shri Murlibhai Fatandas Sawlani was not in ordinary course of business. In view of the same, provisions of sec. 2(22)(e) are applicable here. Advance given to assesses by M/s. Shantai Reality (India) Ltd. is deemed dividend u/s. 2(22)(e) and is required to be added to total Income of assessee."

(3.) In view of the above, I have reason to believe that income of Rs. 1,00,00,000/ - chargeable to tax has escaped assessment for the A.Y. 2008 -09 on account of failure on the part of assessee and the said case is fit for issue of notice u/s. 148 of the IT Act."