MIRANDA TOOLS PVT. LTD. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) By this petition, the Petitioner has challenged the notice dated 26 February 2019 and the order passed on 15 July 2019. By the impugned notice, the Respondent- Assessing Officer has sought to reopen the assessment in respect of the Petitioner for the year 2014-15. By the impugned order the Assessing Officer has rejected the objections raised by the Petitioner.

(2.) The Petitioner is a company registered under the Companies Act engaged in the business of manufacture and marketing of fabrics. The Petitioner filed its return of income for the assessment year 2014-15 on 22 September 2014 declaring nil income. The Petitioner's case was selected for scrutiny assessment vide notice dated 18 September 2015. On 7 April 2016, the Assessing Officer issued notice under section 142(1) of the Income Tax Act, 1961 calling upon the Petitioner to submit certain details regarding share application money received by the Petitioner. The Assessing Officer thereafter passed an assessment order on 1 September 2016 under section 143(3) of the Act accepting the income offered by the Petitioner.

(3.) The Assessing Officer issued a notice on 26 February 2019 under section 148 of the Act on the ground that he has reason to believe that the income chargeable to tax in respect of share application money for the relevant assessment year has escaped assessment. The Petitioner replied to the said notice stating that the return originally filed by it be treated as return filed in response to the notice. The Petitioner also requested that a copy of reasons to be supplied to it, which was supplied to the Petitioner. The Petitioner submitted its objections. The Assessing Officer rejected the objections and passed the impugned order on 15 July 2019 proceeding to reopen the assessment. Hence, the present petition.