Keystone Realtors Private Limited v. Assistant Commissioner Of Income Tax – Central Circle 2(4

SANTOSHSUBHASHKULKARNI Digitally signed bySANTOSH SUBHASHKULKARNIDate: 2022.01.2517:49:48 +0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 3570 OF 2019 Keystone Realtors Private Limited ...Petitioner Versus Assistant Commissioner of Income Tax – Central Circle 2(4) ...Respondent Mr. Harsh Kapadia, for the Petitioner. Mr. Suresh Kumar, for the Respondent. CORAM:K. R. SHRIRAM &N. J. JAMADAR, JJDATED:25[th] JANUARY, 2022(Video Conferencing) -PC: 1.Petitioner is impugning a notice dated 27[th] March 2019,issued under Section 148 of the Income Tax Act, 1961 (the saidAct) for Assessment Year 2012-2013 and the order dated 7[th]October, 2019, rejecting the objections. 2.We have considered the reasons annexed to the petition.The notice under Section 148 of the said Act being issued after the expiry of four years and the assessment having beencompleted under Section 143(3) of the said Act, the proviso toSection 147 of the said Act applies. Respondents have to showthere was failure to truly and fully disclose material facts. We have considered the reasons and there is nothing to indicatethere was failure to disclose any material fact. The entirereasons is based on change of opinion which is not permissible.According to the Assessing Officer, the interest expense, whichhad been allowed earlier as revenue expenditure, should beallowed as business expenditure in ratio of the revenue offeredfrom the project and work in progress at the end of the year.The entire basis starts with "on perusal of the records". In factwhen the case was picked up for scrutiny and the assessmentwas completed under Section 143(3) of the said Act, vide orderdated 27[th] March 2015, the Assessing Officer had acceptedpetitioner's assessment of total income at a loss ofRs.62,80,88,160/-. 3.In the circumstances, petition is allowed in terms of prayerclause - (a) which reads as under: “(a) that this Hon'ble Court may be pleased toissue a Writof Certiorari or a Writ in the natureof Certiorari or any otherappropriate Writ, Order or direction, calling for the records ofthe Petitioner's case and after going into the legality andpropriety thereof, to quash and set aside the said noticedated 27[th] March, 2019 (Exhibit-I)and the subsequent Orderdated 7[th] October, 2019 (Exhibit-L).” 4.Petition disposed. [N. J. JAMADAR, J.] [K. R. SHRIRAM, J.]