SAHIL MACHINES INDIA PVT. LTD Vs. STATE

JUDGEMENT

(1.) By this judgment, we intend to decide three writ petitions.

(2.) All f them involve common questions of law.

(3.) The petitioner-company has filed its return of income for the Assessment year 2012-13 on 27/9/2012 declaring income of Rs.1,77,448.00. A survey u/s 133A of the Income Tax Act, 1961 was conducted at the business premises of the petitioner company on 12/2/2015 by the Deputy Director of Income Tax (Investigation). Amritsar and on the basis of information gathered by the department, the Assistant Commissioner of Income Tax, Circle-2, Amritsar (hereinafter referred as ACIT, Circle 2, Amritsar) recorded reasons to believe and reopened the assessment for the assessment year 2012-2013 under Sec. 147 of the Income Tax Act, 1961 after obtaining necessary approval of the Joint Commissioner of Income Tax, Range-2, Amritsar. The Assessing Officer issued notice u/s 148 of the Act on 8/6/2016. That in response to the aforesaid notice, the petitioner submitted a letter dated nil received in the Office of the Additional Commissioner of Income Tax. Range-2, Amritsar on 8/9/2016 stating that the return already filed by the petitioner may be treated as return filed in response to the notice under Sec. 148 of the Income Tax Act 1961. Thereafter, the assessment proceedings were started and the Assessing Officer called various details and explanations from time to time. The ACIT Circle 2 Amritsar completed the assessment under Sec. 144 read with Sec. 147/148 of the Act on 12/12/2017 at the assessed income of Rs.91,84,300.00 against returned income of Rs.1,77,448.00. While completing the assessment, Assessing Officer has made an addition of Rs.49,06,748.00 and Rs.40,00,000.00 to the income of the petitioner company on account of estimation of net taxable income by applying net profit rate of 5% on gross turnover declared and on account of unexplained credits found in the form of share application money respectively besides addition of Rs.1,00,115.00on account of shortage of stocks found during survey being treated as sales outside of books of account against the above-said erroneous assessment, the petitioner expressly waived his right to file appeal before Commissioner Income Tax (Appeal) and filed a revision petition under Sec. 264 of the Act on 28/12/2018.