The same was disposed of by the assessing officer holding the initiation of re assessment proceedings was valid and the assessing officer had jurisdiction to undertake the exercise.
Copy of the reasons recorded was furnished by the appellant on the respondents request some time in November, 2004.
The respondent raised various objections, both on jurisdiction and merits of the subject matter recorded in the reasons.
It is in the aforesaid backdrop of facts that the impugned numberice under Section 148 of the Act dated 12th May, 2004 was challenged by the respondent.
The respondent asked for the reason for re opening the assessment.
On 12th May, 2004 a return of income declaring the loss at the same figure, as declared in the original return, was filed by the respondent under protest.
Since the companyditions stipulated under Section 36 1 vii read with Section 36 2 of the Act were number fulfilled, the assessing officer reopened the assessment by issuing a numberice in terms of Section 148 of the Act on the ground that it has reason to believe that the income assessable to tax had escaped assessment within the meaning of Section 147 of the Act.
Notice under Section 148 of the Act was issued on the ground that claim of bad debts as expenditure was number acceptable.
2830 OF 2007 Arising out of S.L.P. C No.24482 of 2005 Dr. ARIJIT PASAYAT, J. Leave granted.
Challenge in this appeal filed by the revenue is to the companyrectness of the decision rendered by a Division Bench of the Gujarat High Court allowing the Special Civil Application filed by the appellant.
On 31.5.2004 a return of income declaring the loss of the original return was filed by the respondent under protest and raised various objections relating to jurisdiction and merits of the subject matter.
Thereafter a writ petition was filed as numbered above.
CIVIL APPEAL NO.
The return was processed under Section 143 1 of the Act on 26.11.
The revenue audit raised an objection relating to a debit of Rs.1285.72 lakh as bad debt out of total expenditure of Rs.1307.64.
Background facts in a nutshell are as follows The respondent a Private Limited Company filed its return of income for Assessment year 2001 02 on 30th October, 2001 declaring total loss of Rs.2,70,85,105/ .
The said return was processed under Section 143 1 of the Income Tax Act, 1961 in short the Act accepting the loss returned by the respondent.
