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TMI Blog2022 (9) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... man and was of the view that such transactions are to be construed from the angle of applicability of Section 69A apart from being treated as unexplained credits, wherever applicable. It is this fact which persuaded the AO to issue the notice stating thereunder that accommodation entry in the form of fictitious loan was reflected from M/s Dishman Pharmaceuticals to the assessee. The assessee not only in its objections statement filed to the reopening of the assessment has stated that there was no such transaction and even the books of accounts which formed part and parcel of the assessment order passed u/s 143(3) did not disclose any such loan transaction for the assessment year 2013 - 2014 insofar as the assessee is concerned. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration in this petition is whether the notice dated 30.03.2021 (Annexure-A) issued under Section 148 deserves to be quashed or set aside for any reason whatsoever? [4] BRIEF - BACKGROUND OF THE CASE: Petitioner is a limited company, engaged in the business of manufacturing exports and trading of Dyes Intermediates. For the assessment year of 2013 - 2014 filed its return of income on 17.09.2013 and revised return of income was filed on 21.09.2013, which was processed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred as to the Act ) and on returns being selected for scrutiny, notice under Section 143(2) of the Act was issued to petitioner and assessment order came to be passed under 143(3) of the Act on 21.03.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had paid tax on book profit computed under MAT provision and even if the said component of Rs.40 lakhs is proposed to the addition, it would not change the tax implication, as the assessee would still continue to be governed under the provisions of MAT, namely, Section 115JB and as such there would be no excess tax liability even under MAT provision and as such there is no escapement of tax and therefore reassessment does not arise. He would also contend that no sanction has been obtained as required under Section 151 of the Act, prior to issuance of notice under Section 148 and in the absence of any satisfaction being recorded by the higher authority, impugned notice could not have been issued. Hence, he would contend that impugned notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above order would indicate this Court in order to satisfy itself for issuance of notice to the respondents had called upon the standing counsel appearing for the department, to call for the papers from the department and to assist the cause. As such the records are said to have been produced before Court on 10.12.2021. However, the ordersheet does not reflect of such record having been tendered before the Court or same having been perused by Court. Be that as it may. The standing counsel who is present before the Court today would submit that along with the present appeal two other appeals were also filed and in respect of all the three appeals, the Court intended to look into the records and accordingly, the records were secured and ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry of Rs.40 lakhs in the form of fictitious loan was reflected from M/s Dishman Pharmaceuticals to the assessee. The assessee not only in its objections statement filed to the reopening of the assessment has stated that there was no such transaction and even the books of accounts which formed part and parcel of the assessment order passed under Section 143(3) did not disclose any such loan transaction for the assessment year 2013 - 2014 insofar as the assessee is concerned. In the absence of any foundational facts, the reasons recorded for reopening of the assessment on the premises that Assessing Officer had reason to believe that income had escaped to assessment and thereby there is tax evasion has to be necessarily held as a myth and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is apparent from page : 35 of the paper book, which is a part of the return of income filed by the writ applicant. In column No.8 of the same, we find reference of Rs.52 Lakh towards full value of consideration. Although Mr. Bhatt tried to say something as regards the cost of acquisition with indexation, yet we are of the view that factually there is no foundation for the Revenue to reopen the assessment on the ground as alleged in the reasons assigned to the writ applicant assessee. The principles laid down in aforesaid cases are squarely applicable to facts on hand. [12] Hence, for the reasons aforestated, we find that in the instant case there is no foundation in the notice which formed the basis on which the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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