2023 (3) TMI 1517 - HC - Income Tax

Reopening of assessment u/s 147 - allegation made against the petitioner was that it had received loan from its 100% subsidiary - amount paid towards loan is sought to be treated as income chargeable to tax which according to the AO has escaped assessment - HELD THAT - Issue notice. Respondents accepts notice on behalf of the respondents/revenue. Respondents says that he will return with instructions. In case instructions are received to resist the writ petition counter affidavit will be filed before the next date of hearing. List the matter on 28.04.2023. In the meanwhile there shall be a stay on the operation of the order dated 23.07.2022 passed under Section 148A(d) and the consequential notice of even date i.e. 23.07.2022 issued under Section 148 of the Act till further directions of the Court.

Summary

The High Court of Delhi allowed the petitioner to file legible copies of annexures before the next hearing. The writ petition concerns Assessment Year 2015-16, where the petitioner is contesting the treatment of loan repayment as taxable income. The court issued a stay on the assessment order and notice until further directions, with the next hearing scheduled for 28.04.2023.