SAMAY IRRIGATION PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Civil Writ Petition No.20943/2019 is filed assailing the order dtd. 19/10/2019 dismissing the objections filed against the re-opening of assessment under Sec. 148 of the Income Tax Act, 1961 (hereinafter 'the Act') and show cause notice dtd. 24/10/2019 (hereinafter 'SCN') issued under Sec. 148 of the Act. Civil Writ Petition No.21086/2019 is filed seeking quashing of the reassessment order dtd. 11/11/2019.

(2.) The petitioner for assessment year 2012-13 filed return declaring 'nil' income. The assessment under Sec. 143(3) of the Act was finalized on 30/3/2014. Subsequent proceedings for assessment initiated on basis of revised return filed for correcting error in claiming depreciation were dropped on 19/3/2015 considering that the assessment has already been completed. On 29/3/2019 notice under Sec. 148 of the Act was issued. The reasons that the information received from Director General of Income Tax (Investigation) Mumbai (for brevity 'DGIT') form basis that there is escaped assessment were supplied on 5/8/2019. The petitioner filed objection dtd. 10/10/2019. On dismissal of objection CWP No.20943/2019 was filed. While issuing notice, the order if passed in pursuance to SCN was made subject to outcome of writ. CWP No.21086/2019 was filed challenging the reassessment order dtd. 11/11/2019.

(3.) Learned counsel for the petitioner submits that the proceedings were initiated in absence of tangible material and solely relying upon the third party information. The argument is that the assessment was finalized under Sec. 143(3) of the Act and impugned SCN could not have been issued after completion of four years from the relevant assessment year. Contention is that assessee had fully and truly disclosed the necessary material facts and SCN is time barred. The submission is that the reassessment order is not sustainable on merits, the addition made is without any basis. Reliance is placed upon the decision of Supreme Court in Commissioner of Income Tax, Gujarat Vs. A. Raman and Co. reported in [(1967) 68 ITR 11], decision of this Court in Micro Marbles Private Limited Vs. Office of the Income Tax Officer reported in [(2023) 457 ITR 569] and decision of High Court of Andhra Pradesh in Kohinoor Hatcheries Pvt. Ltd. Vs. Deputy Commissioner of Income Tax and Anr. reported in [(2016)389 ITR 493].