Rajkamal Agro Industries Vs National Faceless Assessment Centre (Gujarat High Court)
The Gujarat High Court considered a petition under Article 227 of the Constitution filed by a partnership firm engaged in the import and export of agro-products and manufacturing of sesame seeds. The petitioner sought to quash an assessment order dated 14.03.2025 passed under Sections 144 and 144D of the Income Tax Act, 1961, for Assessment Year 2023–24, on the ground that the order was issued without considering the petitioner’s detailed replies and documentary evidence regarding alleged non-deduction of TDS under Section 194Q of the Act.
The petitioner had filed its return of income declaring total income of Rs. 31,85,240/-, which was processed under Section 143(1). The case was later selected for scrutiny, and the assessing authority issued several notices under Sections 143(2) and 142(1) calling for information on discrepancies between sales, purchases, and GST returns. The petitioner responded to each notice with detailed submissions and supporting documents, including explanations about the alleged non-deduction of TDS on certain purchases.
In particular, the petitioner clarified that TDS was not deducted only on Rs. 54.17 crore (not Rs. 60.66 crore as alleged), providing a detailed breakdown: (a) Rs. 46.64 crore represented import purchases, to which Section 194Q did not apply since the sellers were non-residents; (b) Rs. 2.47 crore were transactions below the Rs. 50 lakh threshold; (c) Rs. 1.84 crore were purchases where sellers had already collected TCS; (d) Rs. 1.56 crore represented high-seas purchases not subject to domestic TDS; and (e) Rs. 1.65 crore involved suppliers who had filed returns and paid taxes, supported by CA certificates and ITRs. The petitioner argued that there was no loss to the revenue and provided invoices, TDS returns, challans, and ledgers to substantiate its position. A request for hearing through video conferencing was also made.
