RAJHANS PROCESSORS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has filed the instant writ petition under Article 226 of the Constitution of India for questioning the legality and validity of the re-assessment notice dtd. 31/3/2021 (Annex.5) under Sec. 148 of the Income Tax Act, 1961 and the order dtd. 13/9/2021 (Annex.12) disposing of the objections submitted by the petitioner against the re-opening of the assessment for the Assessment Year 2017-18.

(2.) Brief facts relevant and essential for the disposal of the writ petition are noted hereinbelow:- The petitioner firm came into existence in the financial year 2016-2017 (Assessment year 2017-2018) and since then it is engaged in the business of textile job work at Pali. The petitioner filed its original return of income in terms of Sec. 139 (1) of the Income Tax Act, 1961 for the assessment year 2017-2018 on 30/9/2017 and the same was verified by the respondent Department without any defect. After filing of the return of income for the Assessment Year 2017-18, a notice/summon dtd. 24/8/2017 under Sec. 131 (1A) of the Income Tax Act was issued to the petitioner for making an enquiry in relation to the source of large investment to the tune of Rs.1,21,40,000.00 made by the petitioner firm in acquiring immovable property situated at plot No.A-4, Nextgen Textile Park, Sardarsamand Road, Pali. The petitioner filed detailed explanation in prescribed format alongwith documentary evidence in response to the said notice/summon. No further proceedings were forthcoming after the explanation submitted by the petitioner as above. However, a notice dtd. 31/3/2021 (Annex.5) was served upon the petitioner under Sec. 148 of the Income Tax Act proposing to reopen proceedings for the assessment year 2017-2018 stating therein that the Assessing Officer (A.O.) had reasons to believe that income chargeable to tax had escaped assessment for the Assessment Year 2017-18 within the meaning of Sec. 147 of the Income Tax Act. The petitioner filed a fresh return of income in response to the notice issued under Sec. 148 of the Income Tax Act declaring identical particulars of income as per the original return filed under Sec. 139(1) of the Act. Thereafter, the petitioner requested the respondent I.T.O., Pali to supply copy of the reasons recorded prior to initiation of proceedings under Sec. 148 of the Act alongwith copy of approval/sanction from the competent authority in terms of the Sec. 151 of the Income Tax Act. In response thereto, the petitioner received a communication dtd. 28/6/2021 (Annex.8) issued under Sec. 143 (2) of the Act incorporating therein the reasons to believe and so also the approval for initiating the re-assessment proceedings.

(3.) The reasons for reopening the assessment as highlighted in the Annex.8 are reproduced hereinbelow for the sake of ready reference:-