ACIT Vs Axter Pharmaceuticals India Private Limited (Supreme Court of India)
The matter before the Gujarat High Court and subsequently the Supreme Court involved challenges to notices issued under Section 148 of the Income Tax Act, 1961, for reopening assessments of Axter Pharmaceuticals India Pvt. Ltd. (formerly Claris Injectable Limited) for the Assessment Years 2015-16, 2016-17, and 2017-18. The notices were issued on the grounds that the Assessing Officer (AO) had reasons to believe that income had escaped assessment related to depreciation claims and capital gains arising from the acquisition of an injectable business unit from its holding company, Claris Lifesciences Pvt. Ltd., on a Slump Sale basis.
Read HC Judgment: Reopening Beyond Four-Year Limit Invalid if Original Assessment Fully Disclosed Facts
For Assessment Year 2015-16, the petitioner had declared a total loss of Rs. 33.86 crore and paid Minimum Alternate Tax (MAT) of Rs. 80.08 million on book profits of Rs. 43.28 crore. During the original assessment under Section 143(3), the AO had scrutinized details regarding amalgamation/demerger, intangible assets, depreciation, and tax audit reports. Based on the responses provided by the petitioner, the assessment order was passed on 22.12.2017. Subsequently, the AO issued notices under Section 148 on 26.3.2021 for reopening the assessments.
