JUDGMENT :

Bhargav D. Karia, J.

1. Heard learned advocate Mr. Manish J. Shah for the petitioner and learned Senior Advocate Mr. M.R. Bhatt for M.R. Bhatt and Co. for the respondent.

2. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 13.03.2018 issued under section 148 of the Income Tax Act, 1961 (For short “the Act”) for reopening of the assessment proceedings for the Assessment Year 2011-2012 and also challenged the order dated 3.10.2018 disposing of the objections raised by the petitioner against the notice for reopening.

3. Brief facts of the case are as under :

3.1 The petitioner is private limited company and is engaged in business of construction and engineering.

3.2 For the Assessment Year 2011-2012, the petitioner submitted e-return of income declaring total income of Rs.2,61,86,720/-.

3.3 The petitioner received a notice under section 142(1) of the Act dated 3.12.2012 calling for certain details which included details of scrutiny assessments of last three years and whether the petitioner is in appeal against the same and whether appeal has been decided and its status of demand.

3.4 The petitioner received another notice under section 143(2) of the Act dated 27.12.2012 seeking further details.

3.5 The petitioner submitted its reply dated 9.01.2013 and submitted copy of company’s audit report and tax audit report as well as copies of previous three years’ assessment orders and also clarified that the petitioner had preferred appeal against the order for Assessment Year 2009-2010 before the CIT(Appeals) which was pending.

3.6 The respondent thereafter issued notice under section 142(1) of the Act dated 28.06.2013 wherein once again the petitioner was required to submit assessment orders for Assessment Years 2008-2009, 2009-2010 and 2010-2011, if they were selected for scrutiny. Other details were also asked for.

3.7 In response to the said notice under section 142(1) of the Act, the petitioner vide letter dated 6.08.2013 gave a detailed reply to the queries raised by the Assessing Officer.

3.8 It is the case of the petitioner that in one of the appearances before the Assessing Officer, the petitioner submitted a copy of order of CIT (Appeals) dated 9.05.2013 in its own case for the Assessment Year 2009-2010 wherein the issue of disallowance of interest payment made to entities specified under section 40A(2)(b) of the Act was considered and allowed and the issue under section 14A was also considered.

3.9 The petitioner thereafter submitted its written submissions dated 19.02.2014 and provided the information that was called for by the respondent with regard to Guarantee Commission and details regarding investment in mutual funds, which is taken as tax free income under section 14A of the Act. The petitioner also submitted a further detailed written submission dated 5.03.2014.

3.10 It is the case of the petitioner that after thorough scrutiny of all issues, the respondent passed the assessment order under section 143(3) of the Act dated 6.03.2014 disallowing an amount of Rs.75,000/- under section 14A being dividend from cooperative bank.

3.11 The petitioner thereafter received notice under section 148 of the Act dated 13.03.2018 requiring the petitioner to file return within 30 days from service of the said notice.

3.12 The petitioner vide letter dated 11.06.2018 filed its return in response to the notice under section 148 of the Act and also requested the respondent for copy of the reasons recorded.

3.13 The respondent vide letter dated 04.07.2018 supplied the copy of reasons for reopening the assessment under section 147 of the Act for the Assessment Year 2011-2012. The reasons recorded by the Assessing Officer for reopening the assessment under section 147 of the Act read as under :

"Reasons for Re-opening Assessment w/s. 147 of the 1.T.Act, 1961

1. The assessee company h