Cement Limited Vs ACIT (Rajasthan High Court)
The Rajasthan High Court examined the validity of reassessment proceedings initiated against the assessee for Assessment Year 2017–18. The petitioner challenged the legality of a show-cause notice issued under Section 148A(b) dated 31 March 2024, the reassassessment notice under Section 148 dated 1 May 2024, and the order passed under Section 148A(d) on the same date. The petitioner contended that all actions were barred by limitation, based on a change of opinion, and issued without jurisdiction.
The assessee, engaged in the manufacture and sale of cement, had originally filed its return of income for AY 2017–18 in November 2017, later revising it in March 2019. An assessment under Section 143(3) was completed in August 2021, followed by partial relief from the Commissioner (Appeals) in June 2023 and full relief from the Income Tax Appellate Tribunal, which confirmed the assessee’s entitlement to deduction under Section 80IA, with only the quantum being in dispute.
Subsequently, a survey under Section 133A was conducted in June 2023. Based on observations made during the survey, the Revenue alleged that deductions claimed under Section 80IA in respect of profits from Solid Waste Management System, Water Treatment System, and Power Generation were not admissible, asserting that no such eligible undertakings existed. Relying on this information, the Assessing Officer issued a notice under Section 148A(b), alleging escapement of income amounting to over ₹8,41 crore.
