JUDGMENT

Ritu Bahri, J. (Oral)

This petition has been filed seeking quashing of the notice dated 31.03.2021 issued under section 148 of the INCOME TAX ACT , 1961 (Annexure P-1) and the order dated 23.11.2021 (Annexure P-7) whereby, objections filed to the reasons recorded under section 148 of the INCOME TAX ACT , 1961 have been dismissed.

2. The brief facts of the present case are that the petitioner-assessee is a company incorporated on 24.02.1988 under the Companies Act, 1956 having its registered office at Bhai Mohan Singh Nagar, Railmajra, Tehsil Balachaur, Nawanshar, Punjab engaged in the business of manufacturing and sale of BOPP metalized films, BOPP unmetalized films, thermal lamination and leather finishing foil. The petitioner-assessee filed its return of income for assessment year 2014-15 on 29.11.2014 declaring a loss of Rs.37,64,79,263/-. The case of the assessee was selected for scrutiny and the notice under Section 143(2) & 142(1) of the INCOME TAX ACT , 1961 was issued.

3. The assessment proceedings were completed under section 143(3) of the INCOME TAX ACT , 1961 vide order dated 16.12.2016 at nil income after making a disallowance of Rs.4,63,75,270/- under Section 36(1)(iii) of the returned income. The petitioner-assessee filed an appeal against the assessment order dated 16.12.2016 before CIT(A) who allowed the appeal of the assessee against which the department filed an appeal before the Income Tax Appellate Tribunal which also passed an order in favour of the petitioner.

4. Thereafter, the respondent issued notice dated 31.03.2021 (Annexure P-1) i.e. after a gap of 4 years for the assessment year 2014-15 under Section 147 /148 of the Act for re-assessing the income of the petitioner-assessee. In response thereto, the petitioner filed a return on 30.04.2021 and also filed a letter dated 31.05.2021 (Annexure P-2) under protest for providing the copy of reasons recorded for re-opening the case of the petitioner-assessee and also the copy of sanction letter for re-opening the case of the assessee after a gap of four years duly approved by the Principal CIT, Jalandhar.

5. The respondent issued a notice dated 19.05.2021 (Annexure P-3) under section 143(2) of the INCOME TAX ACT , 1961 in which, for the first time, reproduced the reasons for re-opening the case of the petitioner-assessee. The respondent never provided a separate copy of reasons recorded and also the sanction letter duly approved by the Principal CIT for re-assessing the case of the petitioner-assessee. In response to above said notice, petitioner filed objections on 05.07.2021(Annexure P-4) to the Assistant Commissioner of Income Tax, Jalandhar wherein it had been submitted that there was no reason for re-opening the case of the petitioner as the petitioner purchased the property in Panchsheel Park at New Delhi in assessment year 2015-16 after making the full & final payment and further purchased the stamp paper in assessment year 2015-16 itself that is why the petitioner-assessee showed the part payment made in assessment year 2014-15 as Capital Work In Progress (for short "CWIP") in the balance sheet. Further, during scrutiny assessment, the assessee had disclosed all the relevant facts and provided balance sheet, account statements, books of accounts etc. to the Assessing Officer (AO) from which it became clear that the assessee had fully and truly disclosed all relevant facts to the AO, however, the AO never raised any query during the assessment proceedings, and suddenly after a gap of four years, issued notice on the basis of information received from insight port