JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh and learned advocate Mr. Parimalsinh Parmar for the petitioner and learned advocate Mr. Nikunt Raval for the respondent.

2. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 13.12.2017 issued under section 148 of the Income Tax Act, 1961 (For short “the Act”) for reopening of the assessment proceedings for the Assessment Year 2012-2013.

3. Brief facts of the case are as under :

3.1) The petitioner is a company incorporated under the Companies Act, 1956 and was engaged in the business of manufacturing and trading of yarn and fabric during the assessment year under consideration.

3.2) For the Assessment Year 2012-2013, the petitioner filed return of income on 28.09.2012 declaring total income of Rs.1,58,22,100/- after claiming deduction of Rs. 27,62,980/- in respect of key man insurance premium.

3.3) The assessee company Shahlon Industries Pvt. Ltd merged with the petitioner herein i.e. Shahlon Silk Industries Pvt. Ltd vide order dated 27.08.2014 passed by this Court.

3.4) Case of the petitioner was selected for scrutiny assessment under section 143(3) of the Act. Various details were called for by the Assessment Officer. The petitioner furnished such details vide letter dated 7.02.2015.

3.5) The Assessing Officer issued show cause notice dated 9.03.2015 calling upon the petitioner assessee to show cause as to why disallowance under section 14A of the Act should not be made.

3.6) The assessee vide letter dated 12.03.2015 gave justification to the Assessing Officer as to why disallowance under section 14A of the Act is unwarranted in case of the petitioner.

3.7) The Assessing Officer after examining various issues chose not to make any disallowance in respect of Keyman insurance premium while framing assessment under section 143(3) of the Act vide order dated 16.03.2015. However, disallowance was made under section 14A of the Act while framing assessment under section 143(3) of the Act.

3.8) The assessee (i.e. Shahlon Industries Pvt. Ltd.) vide letter dated 30.09.2015 informed the Deputy Commissioner of Income Tax, Circle-2(1)(2), Surat that it has amalgamated with the petitioner herein i.e. Shahlon Silk Industries Pvt. Ltd.

3.9) The respondent thereafter issued the impugned notice dated 13.12.2017 under section 148 of the Act in the name of assessee i.e. Shahlon Industries Pvt. Ltd. seeking to reopen the case of the assessee for the year under consideration.

3.10) The petitioner vide letter dated 22.12.2017 enclosed the copy of original return of income filed by the assessee for the year under consideration.

3.11) The respondent vide notice dated 26.07.2018 called upon the assessee to file return of the income electronically in response to the notice under section 148 of the Act.

3.12) The petitioner vide letter dated 9.08.2018 submitted reply and stated that the assessee company has already merged with the petitioner and assessee - company is no longer in existence, hence, assessee company cannot file return of income electronically.

3.13) The petitioner thereafter requested the Assessing Officer to supply copy of reasons for reopening the case of the assessee and the respondent supplied such reasons on 6.08.2018. The reasons recorded by the Assessing Officer for reopening the assessment read as under :

"The assessee is a Company engaged in manufacturing and trading of yarn and fabrics. The assessed filed its return of income for AY 2012-13 on 28.09.2012 declaring income of Rs.1,58,22,102/- under normal provision and income of Rs.1.71,69,275/- u/s 115JB of the Act. The same was assessed u/s 143(3) and income was determined at Rs.1,75,85,100/- under normal provisions while accepting returned income u/s 115JB vide order dated 16.03.2015.

2. On perusal of balance sheet, profit and loss account, 3CD report, computation of income and submission of assessee in respect