Panch Tatva Promotors Private Limited Vs ACIT (Delhi High Court)
The Delhi High Court has set aside an Income Tax notice issued under Section 153C of the Income Tax Act, 1961, in the case of Panch Tatva Promotors Private Limited, ruling that a pen drive containing information from a different financial year cannot be the basis for reassessing income.
The judgment, delivered by the Delhi High Court, addressed a notice dated August 28, 2024, pertaining to Assessment Year (AY) 2019-20. The notice was based on a satisfaction note from the Assessing Officer (AO) of Mr. Samir Modi and Ms. Shivani Modi, indicating that documents related to the petitioner were found during a search on February 3, 2021.
However, the court noted that the satisfaction note lacked any information relevant to determining the petitioner’s income assessable in AY 2019-20. The note mentioned a pen drive containing transaction details between High Ground Enterprises Ltd. (HGEL) and companies providing accommodation entries through bogus invoices. While a transaction involving the petitioner for ₹70,78,680 was recorded, it pertained to Financial Year 2014-15.
The court emphasized that the pen drive could not be considered as containing any incriminating material concerning the petitioner for AY 2019-20, thus making the reassessment under Section 153C unjustified.
