Wp/2574/2021 Of Tilak Ventures Ltd v. Income Tax Officer - 11(3)(1) And 2 Ors

Digitallysigned byMEERAMEERAMAHESHMAHESHJADHAVJADHAVDate:2022.02.2215:54:21+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONWRIT PETITION NO. 2574 OF 2021 Tilak Ventures Ltd. V/s.Income Tax Officer-11(3)(1) ….Petitioner …Respondent ---- Mr. R. S. Padvekar i/b Mr. Tanzil Padvekar for PetitionerMr. Akhileshwar Sharma for Respondents-Revenue ---- CORAM : K.R. SHRIRAM &N.J. JAMADAR, JJ DATED : 21[st] FEBRUARY 2022 P.C. : 1Petitioner is impugning a notice dated 30[th] March 2021 issued under Section 148 of the Income Tax Act 1961, for A.Y.-2015-2016. The reasons recorded for reopening has been provided to petitioner. We have considered the reasons with the assistance of Mr. Padvekar. The reasons read as under: “Reasons for re-opening of assessment u/s 148 of the I. T. Act 1961for A.Y.2015-16 M/s Tilak Ventures Limited (PAN: The assessee company formerly known as M/s Out of City TravelSolutions Ltd., filed the return of income for the year underconsideration on 29.09.2015 declaring loss of Rs.1476/-.Subsequently, the case was selected for scrutiny and the assessmentwas completed on 19.12.2017 on the total assessed loss ofRs.70,05,060/-. During the year under consideration, the assesseewas engaged in the business of providing financial services. The income department has collected information about taxpayersfrom various sources such as Annual information Return (AIR),Central Information Branch (CIB), Tax Deduction at Source (TDS)Statement and information uploaded by investigation Wings / CentralCircle / I & CI on Insight Portal. As per the information summary available in Insight Portal, thefollowing information relating to Assessment Year 2015-16 pertains tothe assessee. 2.On verification of details available on record, it can be seen thatassessee has concealed income related to reversal trades investment inBSE.3…………………4…………………5…………………6………………….” 2Mr. Padvekar is at loss as to what reversal trade in BSE means. Mr.Sharma is not very certain what it could mean and we are also at sea. Thereasons does not disclose anything that could be remotely termed “reasonsto believe income has escaped assessment.” First of all, it does not explainwhat reversal trade in BSE means. Secondly, it does not even state on whichscrip there has been any reversal trade in BSE that can be termedescapement of assessment and thirdly, how could it be even linked topetitioner. Even in the affidavit in reply, it is simply stated “I say that theDepartment was having information that petitioner had made reversal tradeof Rs.83,04,053/- involved in reversal trade. This is the new informationreceived by respondent no.1…………….” 3In the circumstances, we hereby quash and set aside the notice dated 30[th] March 2021. Consequently, the order dated 11[th] August 2021 disposing the objections is also quashed and set aside. 4Petition disposed. (N. J. JAMADAR, J.) (K.R. SHRIRAM, J.)