Zydus Infrastructure Private Limited Vs DCIT (Gujarat High Court)
The Gujarat High Court heard a writ petition filed under Article 226 of the Constitution of India challenging the validity of a demand notice dated 22.01.2020 issued under Section 156 of the Income-tax Act, 1961 for ₹5,02,30,558 along with a related communication dated 23.01.2020. The petitioner company, incorporated under the Companies Act, 1956, is engaged in the development, operation, and maintenance of a Special Economic Zone.
The petitioner had filed its return of income for Assessment Year 2012–13 on 24.09.2012. According to the petitioner, the return was filed with full disclosure, including annexures and audit reports. During the assessment process, the Assessing Officer issued a scrutiny notice on 16.09.2014 covering 30 different issues. One of the points examined related to the distribution of profits amounting to ₹28.50 crore, on which tax was not paid in view of Section 115-O(6) of the Act. After examining the explanation and evidence submitted by the petitioner, the Deputy Commissioner of Income Tax completed the assessment under Section 143(3) on 27.01.2015 and accepted the petitioner’s computation showing dividend distribution tax payable as zero.
Subsequently, on 22.01.2020, the respondent issued a notice of demand under Section 156 stating that a tax liability of ₹5,02,30,558 was payable for the same assessment year. The petitioner challenged this demand notice, contending that it had been issued without initiating any reassessment proceedings.
