Jayatma Technologies Private Limited Vs DCIT (Gujarat High Court)
The petitioner challenged the notice dated 15.03.2019 issued under Section 148 of the Income-tax Act, 1961 for reopening the assessment for Assessment Year 2012-13 and the order dated 14.10.2019 rejecting its objections to the reopening.
For AY 2012-13, the petitioner filed its return declaring total income of ₹2,06,35,249. The return was selected for scrutiny, and notices under Sections 143(2) and 142(1) were issued. During the scrutiny proceedings, the Assessing Officer sought details regarding payments made, tax deducted at source (TDS), cost of integrated services sold amounting to ₹7.5 crore, and advance/deposit written off of ₹23,54,080. The petitioner furnished the requisite details, following which the assessment was completed under Section 143(3) on 20.01.2015.
After more than four years from the end of the relevant assessment year, the Assessing Officer issued a notice under Section 148 alleging escapement of income. The reasons for reopening related to the alleged failure to deduct TDS under Section 194C on integrated service charges of ₹7,51,77,563 and the claim of ₹23,54,080 as advance/deposit written off. The petitioner filed its return in response to the notice and objected to the reopening, but the objections were rejected by order dated 14.10.2019.
