Alankar Promoters LLP Vs ITO (Delhi High Court)
The Delhi High Court considered a petition filed by Alankar Promoters LLP challenging a notice dated 31.03.2019 issued under Section 148 of the Income Tax Act, 1961 and the consequential reassessment proceedings for assessment year 2012-13. The petitioner had also challenged the order dated 02.12.2019 disposing of its objections to the reassessment notice and, subsequently, the reassessment order dated 05.12.2019 passed under Section 143(3)/147 of the Act.
M/s Alankar Promoters Pvt. Ltd. was incorporated on 07.09.2011 under the Companies Act, 1956. During financial year 2011-12, it had availed an interest-free unsecured loan of ₹5,00,000/- from Sh. Ashok Kumar Jain, who was then a Director of the assessee. The assessee claimed that the loan was for business purposes, was received through proper banking channels and was repaid to Sh. Ashok Kumar Jain during financial year 2012-13 through banking channels.
On 24.08.2012, the assessee filed its return of income under Section 139(1) for assessment year 2012-13 declaring Nil income. The return was processed under Section 143(1). With effect from 10.01.2019, the assessee was reconstituted as a limited liability partnership, namely the petitioner before the High Court.
On 31.03.2019, respondent no.2 issued the impugned notice under Section 148 stating that it had reasons to believe that the assessee’s income for assessment year 2012-13 had escaped assessment within the meaning of Section 147. The petitioner furnished a copy of the return, requested the reasons recorded and sought the material on which the reassessment proceedings had been initiated. It also informed the Assessing Officer that, with effect from 10.01.2019, Alankar Promoters Pvt. Ltd. had ceased to exist. The reasons recorded were furnished on 11.11.2019, although the petitioner claimed that the material relied upon for reopening, the sanction under Section 151 and the format used for obtaining the sanction were not provided.
