Case Law Details
Voltas Limited Vs ACIT (Bombay High Court)
Facts- Petitioner is a company engaged in the business of air conditioning and refrigeration etc. During the A.Y. 2015-16, petitioner incurred expenses of Rs.3,30,82,713 towards CSR as per section 135 of the Companies Act, 2013. Petitioner had also claimed deduction in return of income u/s 35AC and 80G of the Act for donations made to various institutions. Petitioner’s ROI was selected for scrutiny and assessment order came to be passed u/s 143(3) read with section 92CA of the Act on 18.02.2019. During the course of assessment proceedings, petitioner was asked queries including one in notice dated 08.10.2018 u/s 142(1) of the Act.
Thereafter, petitioner received a notice dated 31.03.2021 u/s 148 of the Act for A.Y. 2015-16 asserting that there are reasons to believe that petitioner’s income chargeable to tax for A.Y. 2015-16 has escaped assessment within the meaning of section 147 of the Act.
Conclusion- Sub-Section 1 of Section 151 of the Act provides that no notice shall be issued under Section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice.
Admittedly in this case, four years from the end of the relevant assessment year A.Y. 2015-16 has expired before the issuance of notice and the approval also has been obtained from the Additional Commissioner of Income Tax and not Principal Commissioner of Income Tax.
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