2025 (12) TMI 979

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....) 1. Registry shall accept the appearance note of Mr. Maunil Yajnik, learned Senior Standing Counsel for the respondents. 2. Rule. Learned Senior Standing Counsel Mr. Maunil Yajnik waives service of notice of rule on behalf of the respondents. Since a short issue is involved in the present writ petition, the same is taken up for final hearing and disposal today. 3. The present writ petition has been filed seeking quashing and setting aside of the impugned Notice dated 28.06.2025 issued by respondent No.1 under Section 148 of the Income Tax Act, 1961 (for short, "the Act"), and the impugned order issued under Section 148A(3) of even date, i.e., 28.06.2025. 4. The brief facts leading to the filing of the present writ petition are ....

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....issued under Section 148A(3) of the Act as well as the notice under Section 148 of the Act are required to be quashed and set aside as the same are ex facie illegal and without jurisdiction. It is submitted that the Assessing Officer has incorrectly held that income had escaped assessment despite the petitioner having categorically clarified in its reply and during personal hearing that the financial transaction with M/s. Astro Gems & Jewellery Private Limited, amounting to Rs. 58,62,61,000/-, was fully disclosed as a loan transaction which had been repaid, and accordingly, the interest receivable thereon had been duly credited to the Profit and Loss Account and offered as income in the return of income filed for the Financial Year 2020-21.....

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....f the Act. 7.1 That the respondents reopened the assessment and issued notice questioning the transaction of Rs. 58,62,61,000/- with M/s. Astro Gems & Jewellery Pvt Ltd. The petitioner submitted its detailed reply on 28.05.2025, explaining that a loan of Rs. 29,31,29,000/- had been advanced to M/s. Astro Gems & Jewellery Pvt Ltd., which was subsequently repaid, and while repaying, interest receivable at 13% per annum, i.e. Rs. 1,91,85,520/-, was also paid and reflected in the return. It was also specifically stated that the said amount was duly accounted for in the books of account. The interest income receivable from M/s. Astro Gems & Jewellery Pvt. Ltd. was duly credited to the Profit and Loss Account and offered as income in the retur....