TaxTMI 
TaxTMI 
2022 (10) TMI 356
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....facture and assembly of Completely Built Units for sale to Group Companies and further sale to export and domestic markets. For Assessment Year 2014- 15, the petitioner filed its return of income electronically on 29.11.2014 paying Minimum Alternate Tax ("MAT") under Section 115JB of the Income Tax Act,1961[in short, 'the Act']. The petitioner subsequently revised its return of income on 23.11.2015 against discharging taxes under MAT. 3. Thereafter, the respondent initiated regular assessment proceedings for Assessment Year 2014-15 by issuing notice under Section 143 (2) of the Act on 28.08.2015 followed by notice under Section 142 (1) of the Act, calling for evidence/information. 4. According to the assessee, after the input or response supplied to the said notices by the assessee, after careful examination of the said submission of the petitioner's side, the third respondent concluded the proceedings by passing a draft assessment order under Section 143 (3) of the Act read with Section 92 CA and 144C (1) of the Act, wherein an adjustment on account of Transfer Pricing (TP) as proposed by the Transfer Pricing Officer was made. 5. It is the further case of the ....
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....se is over as early as on 31.03.2019 and now the notice under Section 148, which is impugned herein, was issued on 30.03.2021 clearly it is beyond the limitation, therefore absolutely the respondent does not have any jurisdiction to issue such notice to proceed further with the proceedings initiated under Section 147. This in fact, according to the learned counsel for the petitioner, is the prime ground under which, the petitioner has chosen to approach this Court by filing this writ petition by invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India. 11. In support of this case, the learned counsel would further contend that, if we take up the content made in the impugned notice dated 30.03.2021, nowhere it is stated that because of the particular reason, the Assessing Officer has reason to believe that the income of the assessee for the Assessment Year 2014-15 has escaped assessment within the meaning of Section 147 of the Act. 12. The learned counsel would also submit that, after issuance of Section 148 notice, objection against the initiation of proceedings under Section 147 has been made in detail by the petitioner / assessee ....
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....so to Section 147 i.e., because of the non-disclosure of the materials fully and truly by the assessee, that kind of escaped assessment now has been noticed and that is the reason to believe on the part of the assessing authority to initiate proceedings under Section 147 and therefore, on such a fitment on the part of the Revenue in the last limb of the proviso to Section 147, the assessee's case cannot stand in the legal scrutiny, if the principle laid down in the Hon'ble Division Bench judgment cited supra is applied. Therefore, the learned counsel seeks indulgence of this Court in this regard. 16. On the other hand, Mrs.Hema Muralikrishnan, learned Senior Standing counsel appearing for the respondent/Revenue, would submit that, insofar as the four years limitation as claimed by the petitioner by quoting the proviso to Section 147 is concerned, though there are four situations mentioned in the said proviso, the petitioner's case certainly would come under the purview of the fourth limb namely to disclose fully and truly all material facts necessary for his assessment for that Assessment Year. 17. The learned Standing counsel would further submit that, merely bec....
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....anced, she contended. 22. I have considered the said rival submissions made by the learned counsel for the parties and have perused the materials placed before this Court. 23. Though to some extent detailed arguments were advanced by the learned counsel appearing for the petitioner, for the purpose of disposal of this writ petition, as the grounds available for the petitioner to urge before this Court by invoking the extraordinary jurisdiction of this Court under Article 226 in Revenue matters are very limited, out of which, since the petitioner counsel raised a point of jurisdiction on the basis of limitation, where the petitioner counsel is able to cite a decision of Hon'ble Division Bench of this Court cited in the aforesaid decision in Schwing Stetter India (P) Ltd., case, where it has been held in clear terms by the Hon'ble Division Bench that when the Assessing Officer had failed to record anywhere his satisfaction or belief that the income chargeable to tax had escaped assessment on account of the failure of the assessee to disclose truly and fully all material facts necessary for assessment, whether the notice issued under Section 147 of the Act beyond the period of f....
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....his proceedings/notice dated 23.08.2021, he has stated the following: "Subject: Reasons for reopening under Section 147. The assessee has claimed Rs.72,80,23,017/- as "any other amount allowable as deduction"in return of income. As seen from Form 3CD, income to be taxed under Section 41 was Rs.77,28,25,446/- representing provision no longer required. Amount credited to P & L account in this account was Rs.103,61,50,000/-. It this is taken into account, the deduction to be allowed would be Rs.26,33,24,554/- (1,03,61,50,000- 77,28,25,446). This excess claim of Rs.464698463/-(72,80,23,017-26,33,24,554) needs to be disallowed." 28. Though certain figures have been stated therein, it has not been specifically stated as to why Assessing Authority has reason to believe, that there has been no disclosure fully and truly with all material facts, which are necessary for his assessment for the concerned year. 29. In this context, it has been pointed out by the learned counsel appearing for the petitioner that, in the very return submitted by the petitioner, all these figures mentioned in the order dated 23.08.2021 of the respondent has been disclosed. 30. I....