Vedanta Limited Vs ACIT (Delhi High Court)
Delhi High Court held that entire assumption of jurisdiction u/s. 148 is based on a wholly erroneous view that payment made for acquiring mining rights is to be treated as income. Since, such payment is not income, reassessment action based on erroneous view quashed.
Facts- The challenge is to the reassessment action initiated pursuant to a notice dated 30 March 2019 and pertains to Assessment Year 2012-13.
The respondents take note of the Return of Income which was filed by the petitioner for A.Y. 2012-13 on 27 November 2012. The Assessing Officer appears to have taken note of a letter dated 05 March 2019 received from the Department of Mines and Geology of the State of Karnataka, carrying information in respect of iron ore mines e-auctioned during the Financial Year 2011-12. The auctions were settled in favour of the petitioner and as per the information and reports received by the respondents the bid money amounting to INR 167,75,60,000/- deposited. The respondents, however, took note of the petitioner having disclosed iron ore sales at INR 160,93,69,636/-. It is on the aforesaid basis that they appear to have formed the opinion that there was a non-disclosure of income amounting to INR 6,81,90,364/-.
