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2019 (7) TMI 1580 - HC - Income TaxReopening of assessment - validity of notice u/s 148 - Year of assessment - HELD THAT:- Whether the assessment came to be reopened for the year 2000-01 seems to be on a disputed set of facts, since the Department in their letter dated 16.05.2007, while replying to the petitioner's letter dated 05.04.2007, had found it necessary to reopen, based on the notes of accounts on the Balance Sheet as on 31.03.2000. This aspect is disputed by the petitioner, since M/s.M.Ct.M.Corporation Pvt. Ltd., was dissolved with effect from 01.04.1999 itself and they had intimated the respondent of not filing the income tax returns for the assessment year 2000-01, in view of the dissolution. When such a reply has been given by the Department, it is quite possible that there could be an error with regard to the reference of the balance sheet of the Company. Even otherwise, when the Department has come out with a statement that the notes of accounts on the Balance Sheet as on 31.03.2000 has entitled them to send the Notice under Section 148, it will not be appropriate for this Court to investigate into these disputed facts. Nevertheless, it is also claimed that the petitioner, by a subsequent communication dated 31.05.2007, had objected to the reasons for reopening the assessment. While considering such objections, the respondent had rejected the same through a letter dated 18.07.2007. Since this Court is of the view that the petitioner may have certain valid grounds to raise in connection with the demerger of the petitioner's Company with effect from 01.04.1999, it would be appropriate for the respondent to reconsider the objections. In view of these disputed facts, I do not intend to go into the reasonings adduced by both the parties, but would rather feel it appropriate that the Assessing Officer re-considers such objections by extending due opportunity to the petitioner. Petitioner is granted liberty to raise further objections before the Assessing Officer to the Notice dated 28.03.2007, issued under Section 148 of the Income Tax Act, within a period of 15 days from the date of receipt of copy of this order.
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