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2016 (6) TMI 602 - HC - Income TaxReopening of assessment - taxability of income of the sugarcane - reasons to believe - Held that:- It is undoubtedly true that the original return was not taken in scrutiny by the Assessing Officer and was merely accepted under section 143(1) of the Income-tax Act, 1961. However, the central question of taxability of income of the sugarcane in the background of reasons recorded had come up before this Court on couple of occasions in the past. A Division Bench of this Court in the case of Shri Chalthan Vibhag Khand Udylog Mandli Ltd. vs. Deputy Commissioner of Income-Tax, reported in [2015 (7) TMI 297 - GUJARAT HIGH COURT ], had quashed the notice for re-opening which was based on identical reasons, it was held that the difference between the price to be paid to cane growers and the purchase price declared by the Government under sugar Sugar Control Order cannot be said to be by way of distribution of profits. It was held that the Assessing Officer had not carried out any inquiry before coming to a contrary conclusion and that he should not have a reasonable belief for forming the opinion that the income chargeable to tax had escaped the assessment. - Decided in favour of assessee
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