Naresh Jagdishrai Goyal Vs DCIT (Bombay High Court)
Material Facts
The petitioner challenged the notice dated 31.03.2021 issued under Section 148 of the Income-tax Act, 1961 and the order dated 24.01.2022 rejecting objections to reopening the assessment for Assessment Year 2014-15. The reopening was based on information received from the DCIT (International Taxation), Mumbai, regarding transactions involving M/s. Tail Winds Ltd., a company incorporated in the Isle of Man, which had sold shares of Jet Airways (India) Ltd. The Assessing Officer recorded that the petitioner had purchased shares of Jet Airways (India) Ltd. amounting to ₹3,563.49 crore, that the nature and source of funds were not reflected in the return of income, and that there was reason to believe income chargeable to tax had escaped assessment under Section 147.
The petitioner objected to the reopening, contending that the belief of escapement was a borrowed belief and explaining the source of funds for acquiring the shares. According to the petitioner, the acquisition was funded through short-term loans from HSBC Geneva, repayment out of dividends declared by M/s. Tail Winds Ltd., and own funds for the third tranche. The petitioner also stated that he had purchased 5,79,23,670 shares and not 6,90,57,210 shares as recorded in the reasons.
