Clix Capital Services Private Limited (Formerly Known as GE Money Financial Services Private Ltd.) Vs JCIT (Delhi High Court)
Summary: The Delhi High Court considered a writ petition filed by Clix Capital Services Private Limited, formerly known as GE Money Financial Services Private Ltd., challenging the order dated 14.06.2018 passed by the Revenue disposing of its representation concerning initiation of penalty proceedings under Section 271C of the Income Tax Act, 1961. The petitioner also challenged show-cause notices (SCNs) dated 09.11.2017 and 27.06.2018.
This was the second round of litigation. In the first round, the petitioner had approached the Delhi High Court through W.P.(C) 883/2018, complaining of wrongful assumption of jurisdiction by the Revenue. By order dated 09.05.2018, the Court remitted the matter to the Revenue to dispose of the petitioner’s representation. The order was subsequently clarified on 23.05.2018 to make clear that the Revenue was required to deal with all contentions raised by the petitioner, including the contention that penalty could not be imposed without declaring the petitioner an assessee-in-default.
For AY 2007-08, the petitioner had initially filed its return on 31.10.2007 declaring taxable income of Rs.47,39,42,143/-. A revised return was filed on 31.03.2009 declaring taxable income of Rs.47,14,28,736/-. In the revised return, the petitioner added back expenses amounting to Rs.84,62,03,987/- by way of abundant caution having regard to Section 40(a)(ia) of the Act. In the succeeding AY 2008-09, the same amount was claimed as a deduction because the expenditure had actually been incurred. The return for AY 2008-09 disclosed a loss of Rs.21,00,37,579/-.
