TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 1584
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....ion 148 of the Income Tax Act, 1961 ["the Act"] for the Assessment Years ["AY"] 2008-09 and 2011-12 and proceedings initiated pursuant thereto, including orders passed by the respondent, dismissing the objections filed by the petitioner. The grounds for reopening the assessment in these cases are result of the very same investigation and enquiry carried out by the DIT (Intell. & Cr. Inv.). The reasons recorded for reopening the assessment in the batch of writ petitions are also similar except for certain distinguishing facts. The grounds for challenge are also more or less similar and therefore it is considered appropriate to dispose of all the five petitions by way of a common judgment. 2. For the purpose of the disposal of the present petition, the facts in WP(C) 10542/2015 are being noted extensively. The essential differences are also noted separately. WP(C) 10542/2015 (Experion Hospitality Pvt. Ltd. Vs. Income Tax Officer & Ors.) 3. Petitioner is a private limited company engaged in the business of real estate development. Petitioner filed return of income declaring loss of Rs. 9,91,81,724/- for the AY 2008-09. The return of income was accepted under Section 143 (1) of the ....
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....ncome Tax & Ors. 11. Petitioner M/s. Experion Developers Pvt. Ltd. ["EDPL"] is the successor-in-interest of erstwhile M/s. Experion Developers (International) Pvt. Ltd. ["EDIPL"] has challenged the notice under Section 148 of the Act dated 31.03.2015 for the AY 2008-09. 12. Gold Developers Pvt. Ltd. (International) Pvt. Ltd. filed return of income on 30.09.2008 declaring income of Rs. 50,17,805/-, which was accepted under Section 143 (1) of the Act. This Court approved the scheme of amalgamation of EDIPL with petitioner EDPL w.e.f. 01.04.2012. 13. Notice under Section 148 of the Act dated 31.03.2015 was issued in the name of EDIPL, proposing to reassess the income for AY 2008-09. 14. Respondent No. 1 supplied the copies of reasons along with notice issued under Section 143(2) of the Act, stating that M/s. Gold Hotels & Resort Pte. Ltd. has made an investment of Rs. 409.581 crores in EDIPL, which income had escaped assessment. 15. Objections filed by the petitioner were dismissed by the respondent vide order dated 28.10.2015. WP(C) 10288/2018 (Experion Developers Pvt. Ltd. [Successor-in-interest of erstwhile Experion Developers (International) Pvt. Ltd.] Vs. Assistant Commissi....
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....ons filed by the petitioner were dismissed vide order dated 28.08.2011. Reasons for Reopening 27. The reasons recorded for reopening the assessment in WP(C) 10542/2015 are reproduced herein below:- "Reason for reopening or assessment u/s 147of the Act in the case of M/s. Experion Hospitality Pvt. Ltd for A.Y 2008-09. PAN - AACCG5418P. Information has been received from DIT (Intell. & Cr. Inv.), New Delhi regarding funds received by the assessee from foreign entities. According to report in commercial intelligence received by Jt. Secy. (FT&TR)-II, CBDT from The First Secretary (Economic) in High Commission of India, at Singapore, vide letter dated 31.10.2011, an entity M/s Gold Hotels & Resort Pte. Ltd., a Singapore based company, had made large investments in Indian entity namely, M/s. Experion Hospitality Pvt. Ltd. (formerly known as Gold Resorts and Hotels Pvt. Ltd.). According to the report, it was observed that :- 1. During the year the investing company M/s Gold Hotels & Resort Pte. Ltd., hereinafter referred as Gold Singapore has made an investment of Rs. 39.271 crores in the assessee company. 2. Gold Singapore is owned by one share holder M/s Gemwood Invest Holdi....
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....t the period in which transaction has taken place is less than six years and income chargeable to tax which is believed to have escaped assessment is above Rs. 1 lac. Since the assessment was completed u/s 143 (3) sanction of Ld. Pr. CIT-3, New Delhi is solicited u/s 151 (1) of the IT Act, 1961 for issuing of notice u/s 147/148 of the Act. Therefore, I have reasons to believe that to the income to the extent of Rs. 39.271 crores has escaped assessment for the A.Y 2008-09, on account of failure on the part of the assesse to fully and truly disclose all necessary facts necessary for assessment." Submissions: 28. Learned Standing Counsel, representing the Revenue, has submitted that the Department had initiated the reassessment proceedings for AY 2012-13 on the same reasons and that the challenge before the High Court by way of writ petition vide WP(C) 11302/2019, and WP(C) 11303/2019 [2020 SCC OnLine Del 2588] was dismissed by the Coordinate Bench of this Court vide judgment dated 13.02.2020 and the Special Leave Petition preferred against the said judgment was also dismissed by the Supreme Court vide order dated 20.08.2020. It has thus been submitted that the present batch of wr....
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....sp; 30. Petitioner made significant disclosures in the additional affidavit. However, despite affording opportunity, respondent chose not to file reply to the facts placed on record in the additional affidavit. 31. Learned counsel for petitioner, while relying upon the additional affidavit, submits that capital infusions from the same party had been made year after year and subsequent years and they all had been accepted by the Revenue and have attained finality and even in one case, which went up to the Supreme Court and where the Supreme Court upheld the reassessment proceedings, the subsequent reassessment order deletes the addition made in respect of capital infusion. Hence, in view of the admitted position, the reason for reassessment in the impugned assessment years does not survive. 32. Admittedly, petitioners had challenged the notices under Section 148 of the Act for the AY 2012-13 in WP(C) 11302/2019 and WP(C) 11303/2019 like in this case and the grounds for reopening the assessment in both the writ petitions were a result of an investigation and enquiry conducted by DIT (Intell. & Cr. Inv.) New Delhi. The reasons recorded for reopening the assessment in WP(C) 11303/20....
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.... investing company i.e. M/s Gold Hotels & Resort Pte Ltd., Singapore is around 50,00,000 USD as against the investment made by it of about 180 Million USD over many years, in Indian companies namely Gold Developers Pvt. Ltd (now known as M/s. Experion Developers Pvt. Ltd), Gold Resorts & Hotels Pvt. Ltd (Now known as M/s. Experion Hospitality Pvt. Ltd) and Gold Developers International Ltd (Earlier known as M/s. Experion Developers International Pvt Ltd & Now merged with M/s Experion Developers Pvt Ltd). The equity of the company is very small compared to the amount invested. 5. Gold Singapore does not have sufficient funds or creditworthiness to make such investments and its business premises consisted of just one room which vas found closed most of the times. 6. It is stated in the information that the amounts may have been shown as credits. / loans/ share application money raised from other countries mostly tax heavens to form a circuitous route, and on analysis by the Assessing officer, it is actually found that over a period of time, the credits into the books of accounts of the investing entity have been made as share application money or advances and the fact that the sh....
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....pers International Pvt. Ltd. (formerly known as Gold Developers International Private Ltd) (Now merged with M/s. Experion Developers Pvt. Ltd.) for the AY 2012-13 within the meaning of section 147/148 of Income Tax Act, 1961. This information is new material which has been brought on record. As per data on ITD the case of the assessee company was assessed u/s 143 (3) of the Act for the A.Y. 2012-13. Since the then assessing officer was not aware of the fact that the investments into the assessee companies has been made from an entity which does not have funds of its own to invest such huge amounts, and that the investing entity has only been used as a conduit to route funds through complex transactions via low tax jurisdiction like Dutch Antilles, British Virgin Islands, Luxemburg etc., the income has escaped assessment due to the failure of the assessee to disclose fully and truly all the material facts necessary for its assessment. Thus, this specific condition for reopening is hereby fulfilled in the instant has failed to disclose such material facts on its own earlier. The case is square & covered under provisions of section 147 of income tax Act, 1961. It is also stated that t....
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....vestment made by it of about 180 million USD over many years in Indian company i.e. M/s Experion Developers Pvt. Ltd. (in short "EDPL") & M/s Experion Developers International Pvt. Ltd.(in short "EDIPL"). As per report sent by High Commission of India, Singapore, Gold Singapore does not have sufficient funds or creditworthiness to make such investments and secondly, its business premises consisted of just one room which was found closed most of the times. 3. From the above information and on being satisfied that identity & creditworthiness of the foreign entity i.e. Gold Singapore who had invested Rs. 5.75 crores in the both Indian assessee/entities was doubtful and after recording the reason to believe, the case of the assessee is reopened for assessment proceeding u/s 147 of the IT Act, 1961. Accordingly, notice u/s 148 of the IT Act was issued on 31.03.2019 and assessee filed ITR in response of notice u/s 148 of the IT Act, on 26.04.2019, declaring loss of Rs.3,93,18,429/-. Statuary notice u/s 143(2) was issued on 23.10.2019 and duly served upon the assessee through e-proceeding. Thereafter, notice u/s 142 (1) of the IT Act was issued on 23.10.2019 & 06.04.2021 through e-proce....
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....loss as per original return u/s 139 of the IT Act dated-29.09.2012. (Rs. 3,93,18,429/-) II All adjustment made in earlier assessments u/s 143 (3) of the IT Act. Rs. 4,16,78,968/ III Last Assessed Income(I+II) Rs. 23,60,539/- IV Addition/disallowances : NIL V Adjustment NIL VI Assessed income u/s 147of the I.T. Act, 1961 Rs. 23,60,539/- 7. Assessed at Rs. 23,60,540/- u/s 147/143 (3) of the I.T. Act, 1961. Calculated tax and interest charged as per law. Given credit for prepaid taxes. Copies of the order and demand notice are being issued to the assessee." 34. Similarly, for the AY 2020-21, Gold Singapore received interest income from the petitioner company and the same was offered to tax in India by Gold Singapore. After due verification, the assessment order dated 28.09.2022 under Section 143 (3) of the Act was framed and the returned income of Gold Singapore was accepted by the Department. The assessment order so framed is reproduced below:- "ASSESSMENT ORDER M/s Gold Hotels & Resorts PTE Ltd (now known as Experion Holdings PTE Ltd) (hereinafter referred to as 'the assessee') has filed its return of income for the concerned Assessment Year on 15.02....