Wp/572/2022 Of Rajasthan Udyog And Tools Private Limited v. Assistant Commissioner Of Income Tax-Circle 3 (1) (1) And 3 Ors

Digitallysigned byPURTIPURTIPRASADPRASADPARABPARABDate:2022.03.05 14:43:47+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 572 OF 2022 Rajasthan Udyog and Tools Private Limited V/s.Assistant Commissioner of Income TaxCircle 3(1)(1) and Ors. ….Petitioner …Respondents ---- Mr. Mandar M. Vaidya for Petitioner.Mr. Suresh Kumar for Respondents. ---- CORAM : K.R. SHRIRAM & N. J. JAMADAR, JJ. DATED : 3[rd] MARCH, 2022 P.C. : 1.Petitioner is impugning the notice dated 31[st] March, 2021issued under Section 148 of the Income Tax Act, 1961 (the Act) for A.Y.2014-15 as well as the order on objections dated 23[rd] December, 2021. 2.At the outset we have to note that in the reasons recorded forre-opening the Assessing Officer has displayed total non application of mindand has proceeded on incorrect basis. The order rejecting objections alsohas been passed without considering any of the submissions and withoutapplying his mind. On these grounds alone the notice as well as the orderon objections should be quashed and set aside. 3. The reasons recorded for re-opening in paragraph no.3 and 4 states as under : xxxxx xxxxx 3.As per information summary available in Insight Portal, thefollowing information relating to A.Y. 2017-18 pertains to theassessee company. 4.In this case, information has been received from theDIT(I&CI), Rajasthan vide letter dated 29.11.2019, stating thatduring the year relevant to A.Y. 2014-15, the assessee has purchasedimmovable property at Jodhpur, being Plot No.13, Heavy IndustrialArea, Jodhpur, Rajasthan, for a consideration of Rs.21,50,00,000/-and Rs.2,75,00,000/- totalling to Rs.24,25,00,000/-. xxxxx 4.The fact is petitioner has sold the property and there has beenno purchase as could be even seen from paragraph no.9 of the AssessmentOrder dated 30[th] December, 2016. It is expressly provided in the AssessmentOrder that petitioner has sold land on Plot No.13 at Heavy Industrial Area,Jodhpur and not purchased as mentioned in the reasons recorded for re-opening. Even in paragraph no.3 information mentioned is purchase ofimmovable property when there has been sale. Therefore, the entire basisfor the Assessment Officer’s opinion that there has been escapement ofincome from assessment has to collapse. Moreover, in the reasons for re- opening in paragraph no.3 he says information date is 23[rd] February, 2021 relating to A.Y. 2017-18 and in paragraph no.4 he says, he has receivedinformation on 29[th] November, 2019 relating to A.Y. 2014-15. 5.Therefore, we are setting aside the notice dated 31[st] March,2021 and the order on objections dated 23[rd] December, 2021 and allowing the petition in terms of prayer clause – (a) which reads as under : (a) that this Hon’ble Court may be pleased to issue a writ ofcertiorari or writ in the nature of certiorari or any otherappropriate writ, direction or order under Article 226 of theConstitution of India calling for the records of the case leadingto the issuance of the notice under section 148 of the IncomeTax Act, 1961 dated 31[st] March, 2021, being Ex-K hereto andthe Approval granted to the reasons recorded being Ex-Mhereto and after going through the same and examining thequestion of legality thereof to quash, cancel and set aside theimpugned notice dated 31[st] March, 2021, the Approvalgranted to the reasons recorded being Ex-M hereto and theorder rejecting the Petitioner’s objections dated 23[rd] December,2021, being Ex-Q hereto. 6. Petition disposed. (N. J. JAMADAR, J.) (K.R. SHRIRAM, J.)