Chandra Global Finance Ltd Vs ITO (Delhi High Court)
Delhi High Court held that reopening of assessment u/s. 148 of the Income Tax Act unsustainable as PCIT already decided the matter in favour of the assessee while invoking revisionary powers u/s. 263 of the Income Tax Act. According, reassessment action quashed.
Facts- Petitioner is a company and is an Income Tax Assessee for the AY-2014-15. Petitioner was selected for scrutiny u/s. 143(3) of the Act. During the course of assessment proceedings, petitioner was, inter alia, asked about the share holding pattern of M/s Centrodorstory (India) Pvt. Ltd., in whose shares an investment of Rs. 2 crores was made. Petitioner submitted its reply. After considering the submissions of the petitioner, and after being fully satisfied, Assessment Order dated 21.12.2016 was passed, thereby, assessing the income of the petitioner as ‘Nil’.
After completion of assessment proceedings, notice u/s. 263 of the Act was issued to the petitioner by the Principal Commissioner of Income Tax-II. Post reply from the petitioner, PCIT dropped the proceedings.
After more than two years, a notice dated 28.06.2021 u/s. 148 of the Act was issued to the petitioner for the AY 2014-15. Petitioner filed reply to the said notice where after an order u/s. 148A(d) and the consequential notice u/s. 148 of the Act, both dated 30.07.2022 came to be issued, which are subject matter of challenge in the present writ petition.
