The survey was conducted on Singla Engineers and Contractors Pvt. Ltd. (SECPL) on 31st October 2014. The assessment of the petitioner was completed on 31-3-2015. The jurisdictional Assessing Officer issued the reassessment notice on the basis of information received from DDIT. The petitioner challenged the notice and order disposing the objection by filing writ petition before High Court. Allowing the petition the Court held that the jurisdictional Assessing Officer has gone beyond the reasons recorded for reopening inasmuch as according to him no bank statements or work contract receipts were inquired or submitted during the original assessment proceedings based on which the actual amount and the nature and genuineness of the work done by assessee for SECPL could have been verified. It is settled law that reasons cannot be improved upon and/or supplemented. Relied on First Source Solutions Limited v. ACIT,(2021) 438 ITR 139 (Bom),(HC) CTIT v. Shodiman Investment P. Ltd, (2018) 93 taxmann.com 153 / (2020)) 422 ITR 337 (Bom)(HC) Sabh Infrastructure Limited v. ACIT, (2017) 398 ITR 198 (Delhi).(HC), Crompton Greaves Ltd v. ACIT (2015)) 55 taxmann.com 59 / 229 Taxman 545 (Bom)(HC) Notice of reassessment and order disposing the objection was set aside (WP No. 3543 of 2019, dt. 25-1-22) (AY. 2012-2013)
Patel Engineering Ltd. v. DCIT (2022) 285 Taxman 55 (Bom.)(HC)
S. 147 : Reassessment-After the expiry of four years-Survey-Borrowed satisfaction-Reasons cannot be improved or supplemented-No failure to disclose material facts-Assessing Officer cannot rely on various case laws while disposing the objection without furnishing the copies or brining to the notice of the assessee-Notice of reassessment and order disposing the objection was set aside. [S. 133A, 148, Art. 226]