Case Law Details
Bharti Infratel Limited Vs DCIT (Delhi High Court)
Conclusion: Notice for re-assessment issued under Section 148 against assessee-company was quashed as assessee had made full and true disclosure of material facts; nothing was concealed, withheld and left to be factually discovered in the form of ‘material’ mentioned in detail in accounts and other evidence and moreover, it would be a case of change of opinion as the facts were within the knowledge of the AO when he had passed the original assessment order.
Held: In the present case, assessee-company had challenged the legality and validity of notice for re-assessment issued under Section 148 read with Section 147. It was observed that assessee had made full and true disclosure of material facts i.e. all primary facts which were mentioned and stated in the ‘reasons to believe’. Nothing was concealed, withheld and nothing was left to be factually discovered in the form of ‘material’ mentioned in detail in accounts and other evidence, that was not disclosed/stated but could have been discovered by due diligence. As noted, reading of the ‘reasons to believe’ i.e. evidence and material in form of facts and figures were duly stated and mentioned in the affidavit sworn by Mr. R opposing the second scheme of demerger and transfer of infrastructure assets in 12 circles by assessee to M/s Bharti Infratel Ventures Ltd. and language, facts and figures in the reasons to believe‘ were similar, if not identical. Moreover, it would be a case of change of opinion as assessee had disclosed and had brought on record all facts relating to transfer of passive infrastructure, its book value, fair market value as was mentioned in the SOA as also that transferred passive assets to become property of M/s. I Ltd. including the dates of transfer and the factum that one-step subsidiary Bharti Infratel Ventures Ltd. was created for the said purpose. These facts were within the knowledge of the AO when he had passed the original assessment order.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
Bharti Infratel Limited (‘Petitioner/BIL’, for short) by this writ petition impugns legality and validity of notice for re-assessment dated 31st March, 2015 issued under Section 148 read with Section 147 of the Income Tax Act, 1961 (‘Act’, for short) for the Assessment Year 2008-09. BIL has also challenged the order dated 23rd February, 2016 passed by the Assessing Officer, Deputy Commissioner of Income Tax, Circle-4(2), the first respondent to the writ petition, rejecting its objections to reopening of the assessment.
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