Bausch and Lomb India Private Limited Vs Assessment Unit, National Faceless Assessment Centre (Delhi High Court)
Bausch and Lomb India Private Limited found itself entangled in a legal dispute with the Assessment Unit of the National Faceless Assessment Centre, as highlighted in the judgment delivered by the Delhi High Court. The crux of the matter revolved around an assessment order passed under Sections 143(3) and 144B of the Income Tax Act, 1961, for the Assessment Year 2022-23.
The Assessment Officer had added a substantial sum to Bausch and Lomb’s total income, citing unexplained expenditures under Section 69C of the Act. Additionally, penalty proceedings were initiated under Section 271AAC(1) for alleged income concealment. The core issue centered on discrepancies in the declaration of purchases made by the assessee during the relevant financial year. While Bausch and Lomb disclosed purchases worth a certain amount, the Assessing Officer contended that additional purchases were made, as indicated by data received from the Central Board of Indirect Taxes & Customs (CBIC).
The crux of Bausch and Lomb’s challenge lay in the violation of principles of natural justice during the assessment process. Despite being asked to provide details of the alleged undisclosed purchases, the assessee claimed that it was not furnished with the necessary information to effectively contest the addition. The impugned order heavily relied on CBIC data, failing to reconcile it with the assessee’s submissions or provide specific details of the alleged undisclosed purchases.
