ASSISTANT COMMISSIONER OF INCOME-TAX VS VXL INDIA LTD
2001 P T D 2472
[247 I T R 820]
[Supreme Court of India]
Present: S. P. Bharucha and D.P. Mohapatra, JJ
ASSISTANT COMMISSIONER OF INCOME‑TAX
Versus
VXL INDIA LTD
Civil Appeal No. 15424 of 1996, decided on 08/11/2000.
(Appeal by special leave from the judgment and order, dated April 26, 1995 of the Gujarat High Court in Special Civil Application No.6291 of 1994).
Income‑tax‑‑‑
‑‑‑‑Reassessment‑‑‑Condition precedent‑‑‑Material to support relief that there was excessive allowance of loss or depreciation in original assessment‑‑ Indian Income Tax Act, 1961, Ss. 147 & 148.
From the decision of the Gujarat High Court (see (1995) 215 ITR 295) to the effect that, since the reasons recorded by the Assessing Officer did not disclose the basis for holding the belief that excessive loss or depreciation had been allowed in the original assessment, the notice to reopen the assessment was liable to be quashed, the Department preferred an appeal to the Supreme Court. The Supreme Court set aside the judgment of the High Court and remanded the matter to the Assessing Officer for consideration and clarifying that the assessee would be entitled to raise all available contentions before the Assessing Officer and in proceedings thereafter.
VXL India Ltd. v. Assistant CIT (1995) 215 ITR 295 set aside and matter remanded to the Assessing Officer.
Harish Salve, Solicitor‑General of India (Ranbir Chandra and Ms. Sushma Suri, Advocates with him) for Appellant.
Joseph Vellapally, Senior Advocate (Bhargava V. Desai and Ms. Kumud Singh, Advocates with him) for Respondent.
ORDER
The appeal has been heard for some time, Counsel are now agreed that the judgment and order under appeal should be set aside and that the matter should now be considered by the Assessing Authority.
The appeal is allowed. The order under appeal is set aside. It is made clear that the assessee shall be entitled to raise all available contentions before the Assessing Authority and in proceedings thereafter.
No order as to costs.
M.B.A./1003/FCAppeal allowed.