FCB Interface Communications (P) Ltd. v. Asstt. CIT

Case Laws Analysis
REFERRED New Delhi Television Ltd. v. Dy. CIT 2020 TaxPub(DT) 1703 (SC)
REFERRED Pr. CIT v. L&T Ltd. 2020 TaxPub(DT) 0308 (SC)
REFERRED Pr. CIT v. Kitchen Express Overseas Ltd. 2017 TaxPub(DT) 5562 (Guj-HC)
REFERRED Micro Inks (P) Ltd v. Asstt. CIT 2017 TaxPub(DT) 0446 (Guj-HC)
REFERRED State Bank of Patiala v. CIT 2015 TaxPub(DT) 2774 (P&H-HC)
REFERRED CIT v. Indian Visit Com (P) Ltd. 2008 TaxPub(DT) 2281 (Del-HC)
REFERRED Gkn Driveshafts (India) Ltd. v. Income Tax Officer & Ors. 2003 TaxPub(DT) 0734 (SC)
REFERRED Alembic Chemical Works Co. Ltd. v. CIT 1989 TaxPub(DT) 1096 (SC)
REFERRED Empire Jute Co. Ltd. v. CIT 1980 TaxPub(DT) 1083 (SC)

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The Tax Publishers2024 TaxPub(DT) 1520 (P&H-HC) IN THE PUNJAB & HARYANA HIGH COURT RITU BAHRI & MANISHA BATRA JJ. FCB Interface Communications Pvt. Ltd. v. Asstt. CIT C. W. P. No. 22306 of 2019 (O&M) 13 April, 2023 Petitioner by: Arijit and Abhivadya Sood, Advocates, Respondent by Pridhi Jaswinder Sandhu, Junior Standing Counsel, JUDGMENT *Ritu Bahri J.* C. M. No. 7276-CWP of 2022 Application is allowed and annexures P-10 to P-30 are taken on record. C. W. P. No. 22306 of 2019 2. The petitioner is seeking a writ of certiorari for quashing notice dated 30-3-2019 (annexure P-1) issued under section 148 of the Income-tax Act, 1961 and order dated 10-7-2019 (annexure P-2) disposing of the objections passed by the respondents in relation to the assessment year 2012-13. 3. The petitioner-company is engaged in the business of advertising and marketing communications. The petitioner filed its return for the assessment year 2012-13 on 28-9-2012 under section 139(1) of the Income-tax Act, 1961 (annexure P-3). The petitioner's case was selected for scrutiny and during the proceedings several information/documents were sought from the petitioner by issuing notice under section 143(2). The petitioner gave its written submission dated 20-2-2015 (annexure P-4) along with relevant extracts of ledger account as well as sample invoices with respect to the claim of 'Computer supplies and related expenses', which formed part of the head 'Other expenses'. The assessment proceedings were completed under section 143(3) vide order dated 5-3-2015 (annexure P-5). 4. After a period of four years, i. e., on 30-3-2019, the respondents issued notice under section 148 informing the petitioner that some income had escaped from the assessment and directed it to file a return. The petitioner, thereafter, filed the return in response to the notice under section 148 electronically on 26-4-2019 (annexure P-6). Vide letter dated 2-5-2019 (annexure P-7), the petitioner was communicated the reasons for reopening the assessment for the assessment year 2012-13. Pursuant to the said letter (annexure P-7), the petitioner filed its objections dated 6-6-2019 as per the procedure laid down in GKN Driveshafts (India) Ltd. v. ITO (2003) 259 ITR 19 (SC) : (2003) 1 SCC 72 : 2002 SCC OnLine SC 1116 : 2003 TaxPub(DT) 0734 (SC) (annexure P-8). The objections were rejected vide order dated 10-7-2019 (annexure P-2) and, thereafter, proceedings for reassessment had been initiated by way of notice under section 143(2) dated 10-7-2019 (annexure P-9) and in this backdrop, the present writ petition has been filed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2024 TaxPub(DT) 1520 (P&H-HC)

IN THE PUNJAB & HARYANA HIGH COURT

RITU BAHRI & MANISHA BATRA JJ.

FCB Interface Communications Pvt. Ltd. v. Asstt. CIT

C. W. P. No. 22306 of 2019 (O&M)

13 April, 2023

Petitioner by: Arijit and Abhivadya Sood, Advocates,

Respondent by Pridhi Jaswinder Sandhu, Junior Standing Counsel,

JUDGMENT

Ritu Bahri J.

C. M. No. 7276-CWP of 2022

Application is allowed and annexures P-10 to P-30 are taken on record. C. W. P. No. 22306 of 2019

2. The petitioner is seeking a writ of certiorari for quashing notice dated 30-3-2019 (annexure P-1) issued under section 148 of the Income-tax Act, 1961 and order dated 10-7-2019 (annexure P-2) disposing of the objections passed by the respondents in relation to the assessment year 2012-13.

3. The petitioner-company is engaged in the business of advertising and marketing communications. The petitioner filed its return for the assessment year 2012-13 on 28-9-2012 under section 139(1) of the Income-tax Act, 1961 (annexure P-3). The petitioner's case was selected for scrutiny and during the proceedings several information/documents were sought from the petitioner by issuing notice under section 143(2). The petitioner gave its written submission dated 20-2-2015 (annexure P-4) along with relevant extracts of ledger account as well as sample invoices with respect to the claim of 'Computer supplies and related expenses', which formed part of the head 'Other expenses'. The assessment proceedings were completed under section 143(3) vide order dated 5-3-2015 (annexure P-5).

4. After a period of four years, i. e., on 30-3-2019, the respondents issued notice under section 148 informing the petitioner that some income had escaped from the assessment and directed it to file a return. The petitioner, thereafter, filed the return in response to the notice under section 148 electronically on 26-4-2019 (annexure P-6). Vide letter dated 2-5-2019 (annexure P-7), the petitioner was communicated the reasons for reopening the assessment for the assessment year 2012-13. Pursuant to the said letter (annexure P-7), the petitioner filed its objections dated 6-6-2019 as per the procedure laid down in GKN Driveshafts (India) Ltd. v. ITO (2003) 259 ITR 19 (SC) : (2003) 1 SCC 72 : 2002 SCC OnLine SC 1116 : 2003 TaxPub(DT) 0734 (SC) (annexure P-8). The objections were rejected vide order dated 10-7-2019 (annexure P-2) and, thereafter, proceedings for reassessment had been initiated by way of notice under section 143(2) dated 10-7-2019 (annexure P-9) and in this backdrop, the present writ petition has been filed.