Bharat Serums and Vaccines Limited Vs DCIT (Bombay High Court)
Demand Under Section 154 of Income Tax Act, 1961 Quashed After Department Failed to Produce Rectification Order: Bombay HC
Material Facts
The petitioner challenged a demand of Rs.46,84,750 allegedly arising from an order dated 31 March 2021 passed under Section 154 of the Income-tax Act, 1961. According to the petitioner, no rectification order had been served, no show cause notice had been issued, and no intimation of any proceedings under Section 154 had been received. The Income Tax Portal reflected only the pending demand and not the alleged order. An application under the Right to Information Act, 2005 resulted only in the supply of a computation sheet.
The erstwhile Bharat Serums and Vaccines Limited had merged with Aksipro Diagnostics Private Limited pursuant to an NCLT order dated 2 August 2021, after which the transferee company changed its name to Bharat Serums and Vaccines Limited.
For Assessment Year 2013-14, the erstwhile company had filed its return declaring book profits under Section 115JB and nil income under the normal provisions. An assessment order under Section 143(3) dated 29 March 2016 determined book profits after making an addition under Section 14A, against which an appeal had been filed before the Commissioner of Income Tax (Appeals).
