Case Law Details
Peerless Hospitex Hospital and Research Center Limited Vs PCIT (Calcutta High Court)
Facts- It is the case of the petitioner that it is a company within the meaning of Companies Act, 1956, engaged in the business of running a multi-speciality hospital and it intends to challenge the impugned notice dated 27th July, 2017 issued by the Assessing Officer concerned under Section 148 relating to assessment year 2011-12 which was served on the petitioner on 2nd August, 2017 and against which petitioner had filed an objection on 16th March, 2018 which was rejected by the Assessing Officer concerned on 16th July, 2018.
Dispute in this case according to the petitioner relates to a payment of Rs. 51,76,992/- as ‘referral to doctors’ which was claimed by it as business expense in its return of income filed for the assessment year 2011-12 and according to the petitioner this expense was referred in schedule -18 to the audited profit and loss account and that the petitioner had already explained the same in course of regular assessment proceeding and the Assessing Officer had allowed such deduction after due consideration of the relevant materials placed on record. Admittedly initiation of reopening of the assessment in question has been made after expiry of four years from the end of relevant assessment year.
Conclusion- Reopening of assessment u/s. 147 and issuance of notices u/s. 148 admittedly after expiry of four years from the end of relevant assessment year on the selfsame material facts which were already available before the assessing officer at the time of regular assessment and without recording of any omission or failure on the part of the petitioner to disclose fully and truly any material fact necessary for assessment before the assessing officer in course of regular assessment proceeding. I am of the considered opinion that in the facts and circumstances of the case initiation of the impugned proceeding under Section147 of the Income Tax Act, 1961, is bad and not sustainable in law and is liable to be quashed.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
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