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TMI Blog2021 (8) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 148 of the Act, though not part of the statutory requirement, as prescribed under the Act, however, same is guided by the directions issued by the Apex Court. - R/SPECIAL CIVIL APPLICATION NO. 21135 of 2019 - - - Dated:- 26-3-2021 - HONOURABLE MR. JUSTICE J.B.PARDIWALA AND HONOURABLE MR. JUSTICE ILESH J. VORA MS VAIBHAVI K PARIKH FOR THE PETITIONER MRS MAUNA M BHATT FOR THE RESPONDENT ORDER PER : HONOURABLE MR. JUSTICE ILESH J. VORA 1. By filing this writ application under Article 226 of the Constitution of India, the writ applicant seeks to challenge the Notice dated 30.03.2019 issued by respondent No.1 under Section 148 of the Income Tax Act, 1961 (for short the Act, 1961 ) seeking to reopen the writ applicant s income tax assessment for the A.Y. 2012-13. 2. Briefly stated the facts are that, the writ applicant Mena Mani Industries Ltd. being a private limited company, was earlier known as M/s. Anar Industries Ltd. and prior to that, it was known as Enrich Industries Ltd. , filed its return of income on 25.09.2012 declaring its total income at Rs.Nil and the same was processed under Section 143 (1) of the Act. For the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is from the retum of income and ITS data of the assessee company, it is found that the assessee company has received interest income of ₹ 11,17,084/- as per 26 As for F.Y. 2011-12 relevant to A.Y. 2012-13 where as it has disclosed only an interest income of ₹ 5,58,542/-. Further, during the course of investigation proceedings by the DDIT (Inv) a summons was also issued to the assessee company with a request to explain the said transaction entered into with M/s Chetan Enterprises. In response to the same it has submitted by the assessee compan that no transaction was made with M/s Chetan enterprises but not filed any supporting evidence to justify the same with copy of bank statement etc. Therefore, in view of the above all the transaction made with the above concern are not genuine. In view of the above, | have reason to believe that there is escapement of income of ₹ 1,29 47,582/- for A.Y. 2012-13, Therefore, it is a fit case for issuing notice U/s 148 of the Income tax Act. 4. In this case a return of income was filed for the year under consideration but no scrutiny assessment U/s 143(3) of the I.T. Act was made. Accordingly, in this case only requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear under consideration, the writ applicant received ₹ 1,23,89,040/- from M/s. Chetan Enterprises on behalf of M/s. Harsh Enterprise from whom the assessee company was to recover ₹ 1,26,48,563/- on account of sales made in the earlier A.Y 2011-12 and the same had not credited to the account of M/s. Harsh Enterprise. Drawing attention to the ledger copies of M/s. Harsh Enterprise and annual account of the assessee, it was submitted that the writ applicant had not entered into any independent transaction with M/s. Chetan Enterprises and money received from M/s. Chetan Enterprise was merely on behalf of M/s. Harsh Enterprises. Thus, for the year under consideration, the assessee company had received the amount of outstanding sales consideration, which was already offered for tax in preceding year and therefore, no taxing event has taken place during A.Y. 2012-13 and therefore, question of escapement of any income does not arise at all. Under such circumstances, it was humbly submitted that, there is no escapement of income chargeable to tax as contained in the reasons recorded while issuing the impugned notice and the reasons lacked validity and the revenue is not justifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,23,89,040/- from M/s. Chetan Enterprises and transaction was not genuine (ii) the assessee company had received interest amount of ₹ 11,17,084/- as per Form 26AS for A.Y. 2012-13, whereas, the interest income of ₹ 5,58,542/- had not disclosed. 14.Considering the submissions advanced by learned counsel for the respective sides and perusing the materials on record, we are of the view that while disposing off the preliminary objections filed by the writ applicant against the reasons recorded for reassessment have not been properly dealt with by the Assessing Officer. We take the note of the fact that, while submitting the objections, the writ applicant had specifically taken a stand that the alleged amount of ₹ 1,20,46,250/- received from M/s. Chetan Enterprises on behalf of M/s. Harsh Enterprises from whom the writ applicant was to recover ₹ 1,26,48,563/- on account of sales made to the said parties in the year 2011-12 and the same had been credited to the account of M/s. Harsh Enterprises during A.Y. 2012-13 and there was no any independent transaction with M/s. Chetan Enterprises. 15.Record indicates that the writ applicant had responded to the sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed the order disposing of the objections mechanically and without application of mind. In other words, not in a meaningful manner. We are conscious that, disposing off the objections raised by the assessee against the reasons recorded before issuance of notice under Section 148 of the Act, though not part of the statutory requirement, as prescribed under the Act, however, same is guided by the directions issued by the Apex Court. 19. In view of the above, this writ application succeeds in part. The order disposing off the objections filed by the assessee, dated 04.10.2019 at Annexure H, page-55 to 61 to this writ application is hereby set aside and the matter is remitted to the Assessing Officer. The Assessing Officer shall take into consideration the objections raised by the assessee and pass a fresh speaking order in accordance with law. 20.Let this exercise be undertaken within a period of six weeks from the date of the receipt of this order. We may clarify that we have otherwise not expressed any opinion on the merits of the case and we should otherwise also not do so as we are remitting the matter to the Assessing Officer. 21. In the event, if the order that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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