Cement Limited Vs ACIT (Rajasthan High Court)
Rajasthan High Court Quashes Reassessment Notice Because It Was Time-Barred Under Section 149; Reassessment Proceedings Set Aside Due to Violation of Faceless Assessment Scheme; Income Tax Reopening Quashed Because Six-Year Limitation Expired Before Section 148 Notice; Rajasthan High Court Follows Hexaware Ruling to Strike Down Reassessment Notice.
The Rajasthan High Court considered a petition challenging notice dated 31 March 2024 issued under Section 148A(b) of the Income Tax Act, reassessment notice dated 1 May 2024 issued under Section 148, and the order dated 1 May 2024 passed under Section 148A(d). The petitioner, engaged in the business of manufacturing and sale of cement, had claimed deduction under Section 80IA of the Act in relation to profits from Solid Waste Management System (SWM), Water Treatment System (WTS), and New India Power Undertaking (NIPU). The original assessment under Section 143(3) was completed on 12 August 2021 and the deduction claim had been examined during those proceedings.
Subsequently, a survey under Section 133A was conducted between 21 June 2023 and 26 June 2023. Based on observations made during the survey, the Revenue alleged that the deduction claimed under Section 80IA amounting to Rs. 8,41,25,44,299 was inadmissible because no qualifying SWM, WTS, or NIPU units existed as contemplated under Section 80IA. The petitioner responded that the reassessment proceedings were barred by limitation, based on change of opinion, and did not satisfy conditions under Section 149(1)(b).
