TaxTMI 
TaxTMI 
2026 (9) TMI 1808
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.... 1. With the consent of learned advocates appearing for the respective parties, the matter is taken up for final hearing. 2. By way of present writ petition, the petitioner has assailed the order dated 16.03.2026 issued by respondent no.2 under Section 148A(3) of the Income Tax Act, 1961 (for short 'the Act') as well as notice issued under Section 148 of the Act, seeking to reopen the assessment for Assessment Year (A.Y) 2022-2023. FACTS OF THE CASE 3. The petitioner filed its return of income for the Assessment Year 2022-2023 on 31.12.2022, declaring total income of Rs. 32,13,74,078/-. The income tax return was filed pursuant to the statutory audit report carried out by an independent auditor on 06.09.2022 under section 44AB of....
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....26 for reopening the assessment by alleging that the income chargeable to tax has escaped assessment within the meaning of Section 147 of the Act. The notice stipulates that the assessee had claimed the amount of Rs. 17,54,62,925/- as deduction under Section 43B of the Act for TDS, however, the same is not admissible as deduction, since the TDS does not constitute an expense but is a tax deducted from the salary payments. 3.3 In response to the show-cause notice the petitioner submitted its detailed reply on 29.01.2026 categorically explaining that the TDS has neither been shown as expenditure nor claimed as deduction. The petitioner clarified that the Assessing Officer has only considered the Tax Audit report and not considered the inco....
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....accordingly, the scrutiny assessment order under Section 143(3) of the Act was passed accepting the return filed. 4.1 Thus, it is submitted that the reopening is nothing but a change of opinion as all the details were already available with the Assessing Officer, during the original assessment proceedings and the petitioner has not suppressed anything. She has submitted that the ingredients of Section 147 do not get satisfied in the present case and hence, the reopening of the assessment may be quashed and set aside. SUBMISSIONS ON BEHALF OF THE RESPONDENT 5. Opposing the forgoing submissions learned Senior Standing counsel Mr. Dev D. Patel has urged that at this stage, the reopening of the assessment may not be interfered with as ....
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.... the Assessing Officer within the meaning of the provisions of the Act. The said audit objection specifically points out that an amount of Rs. 17,54,62,925/- reported under Section 43B of the Act, required examination and that the assessment had not been made in accordance with the provisions of the Act. It is submitted that the information available on record provided a live and rational nexus for the formation of a prima facie belief that income chargeable to tax had escaped assessment for the relevant assessment year. Therefore, the proceedings initiated under Section 148A of the Act and the consequential action taken thereunder are well within the jurisdiction of the Assessing Officer. It is therefore urged that the present writ petitio....
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....o the Assessing Officer, with regard to the details of TDS deducted during the financial year 2021-2022 vide its communication dated 24.01.2024 and explained in detail about the TDS deduction. Thereafter, the Assessing Officer passed an order under Section 143(3) of the Act dated 04.03.2024 by recording that "the facts of the case suggests that no adverse inference was drawn and the return of income of the assessee is accepted". 7.2 Thereafter, it appears that an audit objection was raised with regard to the TDS and the audit observations dated 08.12.2024 reflects that it is alleged that the petitioner has incorrectly claimed the TDS as expenses whereas TDS is not an expense and hence the deduction claimed under Section 143 B of the Act ....