Fosun Pharma Industrial Pte. Ltd. Vs ACIT/DCIT (Delhi High Court)
Delhi HC Quashes Reassessment Against Fosun Pharma; Terms AO’s Basis “Factually Erroneous”, Remands Matter for Fresh Consideration
The Petitioner had challenged the show-cause notice dt 30.03.2025 issued u/s 148A(1), the order dt 28.06.2025 passed u/s 148A(3), & the consequent reassessment notice dated 28.06.2025 issued u/s 148. The primary allegation in the show-cause notice was that a sum of ₹43,24,65,18,408/- had been received by the Petitioner during AY 2019-20. The Petitioner, represented by Senior Advocate Mr. Ajay Vohra, contended that the said allegation was factually incorrect since no such transaction took place during AY 2019-20. It was clarified that the transaction in question had occurred in AY 2018-19, not in AY 2019-20, & therefore the entire basis for reopening the assessment for AY 2019-20 was erroneous.
On the other hand Revenue, submitted that the Petitioner’s reply dated 16.04.2025 to the notice u/s 148A(1) did not raise this particular factual clarification. The reply merely stated that no transaction mentioned in the notice was entered into during AY 2019-20, without explaining that the transaction had actually taken place in AY 2018-19. Consequently, AO in his order u/s 148A(3) noted that Assessee had failed to furnish any bank statements or supporting documents to substantiate its claim. AO observed that no corroborative material was produced & reliance was placed on RMS information of the CBDT, concluding that the case required further examination.
