Wp/3631/2022 Of The Ugar Sugar Works Ltd v. Asst. Commissioner Of Income Tax Circle Sangli And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.3631 OF 2022 The Ugar Sugar Works Limited ….Petitioner V/s. Assistant Commissioner of IncomeTax, Circle, Sangli and Ors.....Respondents ---- Mr. Riyaz Padvekar a/w. Mr. Tanzil R. Padvekar and Ms. Tejal P. Kharkar forpetitioner.Mr. Suresh Kumar for respondents – Revenue. ---- CORAM : K. R. SHRIRAM & DR. NEELA GOKHALE, JJ.DATED : 23[rd] JANUARY 2024 P.C. : 1One of the main ground in the petition is that the reasonsprovided for reopening, post issuance of notice under Section 148 of theIncome Tax Act, 1961 (the Act) (pre 1[st] April 2021), was incompletereasons as it appears from the reasons annexed to the approval underSection 151 of the Act. 2It is stated that these reasons with the approval under Section151 of the Act was made available to petitioner on 15[th] February 2022 just a day before the impugned order dated 16[th] February 2022 disposingpetitioner’s objections was passed. Mr. Padvekar states that, therefore,petitioner was not given an opportunity to effectively raise all objections tothe reopening. 2/3 432(I).WP-3631-2022.doc 3We have also compared the reasons that were made availableto petitioner vide communication dated 30[th] April 2021 and the reasonsannexed to the approval under Section 151 of the Act. What was madeavailable was incomplete. Therefore, we are satisfied that petitioner wasnot given an opportunity to effectively deal with the reasons to believe thatthere was escapement of income for Assessment Year 2013-2014. 4Therefore, we hereby quash and set aside the impugned orderdated 16[th] February 2022 and remand the matter for denovo consideration. 5In view of the above, the assessment order dated 25[th] March2022 also is hereby quashed and set aside. 6Petitioner shall file detailed objections to the notice dated31[st] March 2021 issued under Section 148 of the Act. Should petitionerwish to receive any documents relied upon in the reasons to believeescapement of income, petitioner shall, within two weeks from the date thisorder being uploaded, apply to the Assessing Officer providing the list ofdocuments/details required. The Assessing Officer shall make availablethose documents/details within two weeks of receiving the request and thelink be made available to petitioner in the portal as well as by email. If anypart of the document is required for further investigation and it does notpertain to petitioner, such portions could be redacted. After petitioner filesthe objections, the Assessing Officer shall pass a reasoned order to dispose 3/3 432(I).WP-3631-2022.doc the objections in accordance with law. The Assessing Officer shall deal withevery point raised by petitioner. Before passing any order, personal hearingshall be granted notice whereof shall be communicated atleast five workingdays in advance. The proceeding will be concluded on or before 30[th] April2024. 7After passing an order disposing objections filed by petitioner,in case the objections are not accepted by the Assessing Officer, then theAssessing Officer should complete reassessment proceedings on or before30[th] June 2024 as per the provisions of law. 8Petition disposed. 9We clarify that we have not made any observation on themerits of the matter. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)