R.K. Buildcreations (P) Ltd. v. ITO

Case Laws Analysis
REFERRED UOI v. Ashish Agarwal 2022 TaxPub(DT) 3105 (SC)
REFERRED Gkn Driveshafts (India) Ltd. v. Income Tax Officer & Ors. 2003 TaxPub(DT) 0734 (SC)

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The Tax Publishers2024 TaxPub(DT) 845 (Raj-HC) : (2024) 462 ITR 0478 IN THE RAJASTHAN HIGH COURT AVNEESH JHINGAN & SHUBHA MEHTA J.J. R.K. Buildcreations (P) Ltd. v. ITO D.B. Civil Writ Petition No. 14414 / 2022 8 February, 2024 Petitioner by: Prakul Khurana, Adv. with Vrinda Lakhotia, Adv. Aryan Singh Chouhan, Adv. & Nilinesh Sen, Adv. Respondent by: Anuroop Singhi, Adv. with N.S. Bhati, Adv. & Aditya Khandelwal, Adv. JUDGMENT *Avneesh Jhingan, J.* 1. This writ petition is filed seeking quashing of order dated 26-7-2022 passed under Section 148A(d) of the Income Tax Act, 1961 (for short the Act). Further prayer is for quashing of notice dated 30-6-2021 issued under Section 148 of the Act. Facts 2. The petitioner is a Private Limited Company. For the Assessment year (for brevity AY) 2015-16, income tax return was filed on 4-11-2015 declaring NIL income. On 30-6-2021, notice under Section 148 of the Act was issued stating that there were reasons to believe that income chargeable to tax for Assessment year 2015- 2016 had escaped assessment. After the decision of the Supreme Court dated 4-5-2022 in the case of Union of India v. Ashish Agarwal (2022) 444 ITR 01 (SC) : 2022 TaxPub(DT) 3105 (SC), notice under Section 148A(b) of the Act was issued on 30-5-2022. The petitioner responded on 11-6-2022, demanded the details and the documents. Additional objections were filed on 14-6-2022. The information reproducing the worksheet mentioning the name of petitioner and other entities who had provided loan to M/S Om Sokhal Builders and Construction Private Limited was supplied on 27-6-2022. After rejection of objections on 26-7-2022, letter for issuance of a DIN No. to the notice under Section 148 of the Act was issued. Hence, the writ petition. 3. During the pendency of the petition, order under Section 147 read with Section 144(B) of the Act was passed on 25-5-2023. The petitioner preferred an appeal, but on 15-11-2023 filed an application for withdrawal of the appeal stating that it was filed under wrong impression that the writ petition challenging the reassessment proceedings was rendered infructuous. Arguments of the Petitioner 4. Learned counsel for the petitioner argues that allegedly income of Rs.30,00,000 escaped assessment, the reassessment proceedings are time barred, having being initiated beyond three years. The contention is that the adverse material was not provided along with the notice and the information relied upon does not relate to the petitioner. The notice is not as per the Section 151A and the scheme framed thereunder. The grievance is that the objections raised were not specifically dealt. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2024 TaxPub(DT) 845 (Raj-HC) : (2024) 462 ITR 0478

IN THE RAJASTHAN HIGH COURT

AVNEESH JHINGAN & SHUBHA MEHTA J.J.

R.K. Buildcreations (P) Ltd. v. ITO

D.B. Civil Writ Petition No. 14414 / 2022

8 February, 2024

Petitioner by: Prakul Khurana, Adv. with Vrinda Lakhotia, Adv. Aryan Singh Chouhan, Adv. & Nilinesh Sen, Adv.

Respondent by: Anuroop Singhi, Adv. with N.S. Bhati, Adv. & Aditya Khandelwal, Adv.

JUDGMENT

Avneesh Jhingan, J.

1. This writ petition is filed seeking quashing of order dated 26-7-2022 passed under Section 148A(d) of the Income Tax Act, 1961 (for short the Act). Further prayer is for quashing of notice dated 30-6-2021 issued under Section 148 of the Act.

Facts

2. The petitioner is a Private Limited Company. For the Assessment year (for brevity AY) 2015-16, income tax return was filed on 4-11-2015 declaring NIL income. On 30-6-2021, notice under Section 148 of the Act was issued stating that there were reasons to believe that income chargeable to tax for Assessment year 2015- 2016 had escaped assessment. After the decision of the Supreme Court dated 4-5-2022 in the case of Union of India v. Ashish Agarwal (2022) 444 ITR 01 (SC) : 2022 TaxPub(DT) 3105 (SC), notice under Section 148A(b) of the Act was issued on 30-5-2022. The petitioner responded on 11-6-2022, demanded the details and the documents. Additional objections were filed on 14-6-2022. The information reproducing the worksheet mentioning the name of petitioner and other entities who had provided loan to M/S Om Sokhal Builders and Construction Private Limited was supplied on 27-6-2022. After rejection of objections on 26-7-2022, letter for issuance of a DIN No. to the notice under Section 148 of the Act was issued. Hence, the writ petition.

3. During the pendency of the petition, order under Section 147 read with Section 144(B) of the Act was passed on 25-5-2023. The petitioner preferred an appeal, but on 15-11-2023 filed an application for withdrawal of the appeal stating that it was filed under wrong impression that the writ petition challenging the reassessment proceedings was rendered infructuous.

Arguments of the Petitioner

4. Learned counsel for the petitioner argues that allegedly income of Rs.30,00,000 escaped assessment, the reassessment proceedings are time barred, having being initiated beyond three years. The contention is that the adverse material was not provided along with the notice and the information relied upon does not relate to the petitioner. The notice is not as per the Section 151A and the scheme framed thereunder. The grievance is that the objections raised were not specifically dealt.