VEDANTA LIMITED Vs. B. D. NAIK

JUDGEMENT

(1.) Petitioner is impugning a notice dtd. 28/3/2008 issued under Sec. 148 of the Income Tax Act 1961 (the Act) issued by respondent no.2 relating to AY-2003-2004 and the order on objections dtd. 22/5/2009.

(2.) Petition was originally filed by one Sterlite Opportunities and Ventures Limited. Subsequently, original petitioner was, as per the scheme of amalgamation between original petitioner and one Sterlite Industries (India) Limited, approved by the Hon'ble Madras High Court in its order dtd. 29/3/2012 amalgamated with Sterlite Industries (India) Ltd. The Hon'ble Madras High Court approved another scheme of amalgamation between Sterlite Industries (India) Ltd. and other companies and Sesa Goa Limited on 25/3/2013. The name of the company, Sesa Goa Limited was changed to Sesa Sterlite Limited on 18/9/2013 and thereafter to Vedanta Limited on 21/4/2015. Petition was accordingly amended pursuant to leave granted by this court by its orders dtd. 6/1/2022 and 3/2/2022.

(3.) Petitioner on 28/11/2003 filed return of income under Sec. 139 of the Act for AY-2003-2004 showing a total loss of Rs.13,52,36,525.00. Alongwith annual returns, petitioner also filed audited profit and loss account and balance sheet, as also the Tax Audit Report under Sec. 44AB of the Act and other documents. The return was processed under Sec. 143(1) of the Act and was subsequently selected for random scrutiny as per score based system. Statutory notices under Ss. 143(2) and 142(1) of the Act were issued and petitioner responded to those notices. Petitioner also received letters dtd. 9/9/2005 and 26/10/2005 from the Assessing Officer (AO), calling upon petitioner to furnish various information and explanation, particularly which is relevant to the matter at hand, i.e., the details of investments made during the year with its sources - Rs.777,61,71,027.00 and interest and finance charges on (i) inter corporate deposits - Rs.17,20,75,343.00, (ii) guarantee commission - Rs.3,54,78,171.00 (with nature of expenses), (iii) loan arrangement fees - Rs.1,60,79,000.00 and (iv) trustee fees - Rs.7,45,583.00.