The Commissioner Of Income Tax-8 v. M/S. Monsanto Holdings Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1291 OF 2011 The Commissioner of Income Tax-8. v. M/s. Monsanto Holdings Pvt. Ltd. ..Appellant. ..Respondent. Mr. Suresh Kumar for the Appellant. Mr. Prakash Shah with Mr. Jas Sanghavi i/by PDS Legal for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 20TH FEBRUARY, 2013 PC: In this appeal, the basic dispute is whether in the facts and in the circumstances of the case the Tribunal was justified in holding that the reopening of the assessment for the assessment year 1999-2000 by the Assessing Officer under section 148 of the Income Tax Act, 1961 by notice dated 6/7/2005 was without jurisdiction? 2)The reasons for reopening the assessment under Section 148 of the Income Tax Act, 1961 dated 6/7/2005 read as under. “M/s. Monsanto India Ltd. The return of income for A.Y.1999-2000 was filed on 31/12/1999 declaring total income of Rs.1,33,05,030/-. The return was processed u/s.143(1) of the Income Tax Act. 2On verification of the records, it is seen that an amount of Rs.45,00,000/- out of the advance given to M/s. Parle Nutrasweet Ltd. for forming a joint venture along with M/s. Acqua Bisleri India Ltd. was written off by the assessee on winding up of the joint venture during the previous year relevant to A.Y.1999-2000. The advance given by the assessee was for the purpose of formation of a joint venture i. e. a capital investment. The loss of Rs.45,00,000/- written off, being a capital nature, is not deductible against the income of the assessee for A.Y. 1999-2000. 3I have reasons to believe that the income amounting to Rs.45,00,000/- escaped assessment. The assessment is required to be reopened u/s. 147 of the Income Tax Act to bring the amount of Rs.45,00,000/- to tax for A.Y. 1999-2000. 4.Permission for issue of notice u/s.148 may be granted u/s.151(2) of the Income Tax Act as more than four years has expired from the end of the assessment year.” 3) In the impugned order, the Tribunal records the fact that in the notes to its return of income, the respondent assessee indicated the fact that an amount of Rs.45,00,000/- out of Rs.50,00.000/- advanced to M/s. Bisleri (India) Ltd. for establishing a joint venture is being written off in the year ending 31/3/1999 and the same is allowable as expenditure under Section 28 of the Income Tax Act, 1961. Thus, there was a complete disclosure when the return of income was originally processed. Thus, the Tribunal concluded that there was no reason to believe that income had escaped assessment to warrant the reopening for assessment for A.Y. 1999-2000 by notice dated 6/7/2005. 4)In view of the fact that the decision of the Tribunal is based on a finding of fact, we see no reason to entertain the proposed questions of law. 6)Accordingly, the appeal is dismissed with no order as to costs. (M.S.SANKLECHA, J.) (J.P. DEVADHAR, J.)