HASMUKH UGARCHAND GADHECHA, HUF,AHMEDABAD vs. THE ITO, WARD-5(2)(2), AHMEDABAD
Facts
The assessee filed its return for AY 2013-14, declaring Rs.3,37,840 income and claiming Long Term Capital Gain (LTCG) of Rs.1,83,67,048/- as exempt u/s 10(38). The original assessment u/s 143(3) accepted the exemption. Subsequently, the assessment was reopened u/s 147/148 after four years, based on information from a search action against Shri Shirish Chandra Shah, alleging that the assessee received accommodation entries for the claimed LTCG from Sawaca shares.
Held
The Tribunal held that the reopening of the assessment was bad in law because it was initiated after four years from the end of the relevant assessment year, and the original assessment was completed u/s 143(3). The AO failed to establish that the assessee did not fully and truly disclose all material facts, as the exempt LTCG claim was already on record. The notice u/s 148 and the subsequent reassessment order were quashed, rendering the merits of additions academic.
Key Issues
Validity of reopening of assessment u/s 147/148 after four years, particularly concerning the first proviso to section 147 when the original assessment was completed u/s 143(3) and material facts were already on record.
Sections Cited
250, 147, 153C, 68, 69C, 10(38), 143(3), 148, 132(4), 151, 139(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
आदेश की ितिलिप अ!ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant 2. #थ" / The Respondent. 3. संबंिधत आयकर आयु% / Concerned CIT आयकर आयु% अपील 4. ( ) / The CIT(A)- (NFAC), Delhi 5. िवभागीय ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER, स#ािपत ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad
Date of dictation (word processed by H-JM in his comp.)) : 1. 4.2 2026 : 2. Date on which the typed draft is placed before the 4.2.2026 Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 9.2.26 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 9.2.26 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order