Cement Limited Vs ACIT (Rajasthan High Court)
Rajasthan High Court allowed Shree Cement Limited’s writ petition challenging reassessment proceedings for Assessment Year 2017-18 and quashed the notice and order dated 1 May 2024. The assessee had originally declared total income of Rs. 4,53,70,36,160/-, subsequently revising its return to Rs. 2,87,91,24,160/-. An assessment under Section 143(3) was completed on 12 August 2021. The dispute concerned, inter alia, deduction under Section 80IA in respect of profits from Solid Waste Management System, Water Treatment System and New India Power Undertaking. Following a survey under Section 133A conducted between 21 and 26 June 2023, the Department alleged that deduction of Rs. 8,41,25,44,299/- was inadmissible and initiated reassessment proceedings.
The assessee challenged the proceedings on several grounds, including limitation under Section 149, issuance of the Section 148 notice by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), absence of the conditions contemplated by Section 149(1)(b), change of opinion and consistent allowance of the Section 80IA deduction in earlier proceedings.
On limitation, the High Court followed Hexaware Technologies Ltd. v. Assistant Commissioner of Income-tax, Circle 15(1)(2). Since the case related to AY 2017-18, the erstwhile six-year period expired on 31 March 2024, whereas the Section 148 notice was issued on 1 May 2024. The Court rejected Revenue’s reliance on the fifth and sixth provisos to Section 149(1)(b), holding that they could not extend the restriction contained in the first proviso.
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