2021 (7) TMI 964

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....48 of the Act, dated 07.03.2011 and quash the same. 2. The petitioner is a Company filed its return of income for the Assessment Year 2004 - 05 admitting an income of Rs. 798.57 Lakhs on 29.10.2004. The petitioner Company had claimed a sum of Rs. 70.44 lakhs towards VRS payments during the year and a sum of Rs. 1,24,28,606/- as a deduction u/s. 80 HHC of the Income Tax Act, 1961. The return of income was accepted and processed under Section 143 (1) on 25.01.2005. Scrutiny Assessment proceedings were initiated by issuing notice under Section 142 (2) on 12.05.2005. Subsequently, a notice under Section 142 (1) was issued on 18.07.2006 and assessment was completed under Section 143 (3) on 29.12.2006. 3. The petitioner not satisfied with t....

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....ibunal was allowed the same. 6. The Income Tax Tribunal filed a writ petition and the High Court in order dated 22.12.2009 in T.C.(A) No.1420 of 2009 had set aside the matter back to the Commissioner of Income Tax (Appeals) and the same is now pending during the relevant point, despite the writ petition was filed. Under these circumstances, the first respondent initiated reassessment proceedings under Section 147 of the Act by issuing a notice under Section 148 of the Act. 7. The petitioner company filed a reply dated 01.04.2011, requesting the first respondent to treat the original return filed on 29.10.2004 as return in response to notice under Section 148 and further requested for the reasons for reopening of assessment. The fir....

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....as 30.03.2011 and the notice under Section 148, was issued on 07.03.2011. Thus, the notice impugned was issued within a period of six years and therefore, the petitioner has to participate in the process of reopening of assessment. 11. Considering the grounds raised by the petitioner, the impugned notice dated 07.03.2011, reveals that the respondent has reason to believe that the income chargeable for the tax for the assessment year 2004 - 05 has escaped assessment. The request of the petitioner assessee to furnish reasons was complied with in letter dated 19.04.2011 and the respondents have furnished the following reasons for reopening of assessment: "As requested, the reason for reopening the Assessment for Assessment year 200....

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.... scrutiny order U/s. 143(3), dt: 29-12-06 or in the Revision order U/s. 154, dated 01-02-07, so also interest income for Rs. 30.04 lacs which has to be brought to tax as per explanation (baa) to U/s 80 HHC, was not taken into calculation. Omission to consider these income for calculation has resulted in incorrect determination of deduction U/s. 80 HHC and consequent short collection fo tax and surcharge along with interest U/s. 234-B to the tune of Rs. 24,55,728/-." 12. The petitioner sent a letter to the respondent stating that the reopening is done beyond the period of six years and therefore, the impugned notice under Section 148 is without jurisdiction. In this regard, the respondent in vide letter dated 14.11.2011 has state....