Case Law Details
Pentamedia Graphics Limited Vs ACIT (Madras High Court)
Final order in the re-assessment proceedings is yet to be passed. Hence, the writ petition itself was premature and no relief could be granted thereof.
Facts- The appellant company is engaged in the business of development and export of computer software. They have filed their ROI for the assessment year 2004-05 on 30.10.2004, declaring an income of Rs.7,71,323/-. The return so filed by the appellant was processed and an intimation u/s. 143 (1) was issued on 30.03.2005. Subsequently, a notice dated 15.12.2005 was issued by the respondent u/s. 148 requiring the appellant to furnish certain details and they were furnished by the appellant on 21.11.2006. Ultimately, the assessment proceedings was completed on 08.12.2006 disallowing Rs.4,00,00,000/- towards webcasting charges and making deductions u/s. 10B of the Act to the tune of Rs.21,70,97,394/-. Resultantly, the income of the appellant was assessed at Rs.38,91,87,715/- and a total demand of Rs.18,53,14,951/-was raised towards tax.
Aggrieved by the order of assessment dated 08.12.2006, the appellant preferred an appeal before the CIT (A), who, by order dated 11.01.2008, partly allowed the appeal deleting the disallowance of Rs.4,00,00,000/- towards webcasting charges.
While so, a notice dated 21.03.2011 was issued by the respondent invoking Section 148 proposing to reopen the concluded assessment on the ground that he had reason to believe that there had been an escapement of income for the AY 2004-2005. Thereafter, the respondent passed the order dated 28.12.2011 u/s. 143 (3) read with Section 147 of the Act raising an additional demand of Rs.33,52,80,175/- towards tax.
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