Sesa Sterlite Limited (Formerly known as Sesa Goa Limited) Vs ACIT (Bombay at Goa High Court)
Summary: The Bombay High Court at Goa considered a group of petitions challenging reopening of assessments through notices issued under Section 148 of the Income Tax Act, 1961. The petitioners were traders and exporters of iron ore, with some also engaged in mining and processing. The reopening notices were issued after the Government of India appointed a Commission of Inquiry under the Commission of Inquiry Act, 1952, chaired by Mr. Justice M.B. Shah (Retired), to inquire into allegations concerning illegal mining, trading and export of iron and manganese ore. The third report of the Shah Commission, among other matters, referred to alleged under-invoicing of exports.
Read SC Judgment in this case: SC Declines Interference with Quashing of Shah Commission-Based Reassessment Notices
Writ Petition No.329 of 2015 was treated as the lead case because it involved all four principal aspects arising in the group: reopening after four years, reopening within four years, alleged under-pricing of exports, and allegations that mining activity was illegal and that the resulting income should therefore be assessed as income from other sources.
The petitioner in the lead case was engaged in mining and production as well as export/trading of iron ore. For Assessment Year 2008-09, it had filed its return declaring total income of 463,09,28,770.00. The assessment was selected for scrutiny under Section 143(2), and the petitioner supplied details concerning its iron ore exports, including quantity, quality, names and countries of purchasers. An assessment under Section 143(3) determined total income at 478,49,83,060.00. The petitioner thereafter pursued appellate remedies before the CIT (Appeals) and the Income Tax Appellate Tribunal.
