TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 887
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....R In all these writ petitions, the petitioner assails the order under Section 148 A(d) of the Income-tax Act, 1961 (the I-T Act), the subsequent notice under Section 148 thereof and a later show cause notice in respect of four assessment years running from assessment year (AY) 2014-2015 to AY 2017-2018 [the Relevant AY or AYs (collectively), as the case may be]. 2. In respect of transactions between the petitioner and Fives France (PAN AABCF6803G) under the Assistance Service Agreement between said parties, the petitioner had filed AAR No.1482 of 2013 under Section 245Q(1) of the I-T Act before the Authority for Advance Ruling (Income tax) (the AAR) seeking a ruling on about 7 questions and, most importantly, on whether payments received ....
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....r and obtaining copies of the purported sanction letters in respect of reassessment, these writ petitions were filed. 5. Learned counsel for the petitioner assailed the orders under Section 148A(d) on multiple grounds. The first ground of challenge was that such orders were issued on the basis of a gross factual error. This contention was raised in respect of the reasons for reopening assessment set out in the communication of June 2022. Learned counsel submitted that re-assessment proceedings were initiated on the basis of the payment of Rs. 56,09,216/- to Fives Solios SA and about three transactions for an aggregate value of Rs. 43,52,744/- with Fives France. By relying on paragraph No.1.2 of the reply dated 07.06.2022 to the above commu....
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....pal), (1971) 1 SCC 453, especially paragraphs 3 & 4 thereof, wherein the Supreme Court concluded that approval was granted mechanically and that such approval would not have been granted if the Commissioner had actually considered the report and satisfied himself as to whether there were clear reasons to believe that income escaped assessment. (iii) CIT v. S. Goyanka Lime & Chemicals Ltd., (2014) SCC OnLine MP 4550, particularly paragraphs 3 & 7 thereof, where the MP High Court held that interference is warranted when notice is issued under Section 148 of the I-T Act in mechanical fashion without the officer concerned applying his mind to the materials on record. (iv) Central India Electricity Supply Co. Ltd. v. Income Tax Officer, (201....
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....hat the petitioner should have filed statutory appeals, if aggrieved. He further submitted that the petitioner had failed to deduct withholding tax on the assumption that the AAR would issue a favourable ruling. Therefore, he contended that the proceedings to reopen the assessments were justified because the reasons to believe that income escaped assessment were founded on tangible material. As regards sanction, learned senior standing counsel submits that sanction was obtained from the Principal Chief Commissioner both for AY 2014-2015 and 2015-2016. As regards AY 2016-2017 and 2017-2018, he submitted that sanction was granted by the Chief Commissioner of Income Tax and that the question of sanction may have an impact only with regard to A....
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....assessee and Fives Solios SA and the three transactions cited therein of an aggregate value of Rs. 43,52,744/- with Fives France were not covered within the scope of the AAR application. In these circumstances, it was contended that the notice was issued on a completely erroneous factual basis. In spite of the issuance of this reply, the respondents proceeded to issue the impugned order under Section 148A(d) of the I-T Act. 12. The satisfaction of the assessing officer that there are reasons to believe that income has escaped assessment for the purpose of reassessment is required to be reached upon objective satisfaction of the officer on the basis of tangible materials. As contended by learned counsel for the petitioner, if re-assessment ....