Macrotech Developers Limited Vs DCIT (Bombay High Court)
Bombay High Court held the reopening of assessment initiated on the basis of subsequent information justified as based on such information transaction was prima facie found to be undisclosed funds routed through various tax havens companies.
Facts- The Petitioner is engaged in the business of real estate development in and around the Mumbai Metropolitan Region. This petition challenges the re-assessment notice under Section 148 of the Income Tax Act, 1961 (the Act), dated 30 March 2016, seeking to reopen the assessment for the assessment year (AY) 2009-2010, and the order dated 28 September 2016 rejecting the objection.
Conclusion- Allahabad High Court in the case of Ambuj Foods (P.) Ltd. vs. Principal Commissioner of Income-tax also was posed with a similar situation wherein based on subsequent information, reopening proceedings were initiated of a concluded assessment. The Allahabad High Court upheld the reassessment proceedings which were initiated beyond the period of 4 years.
Held in the present case also, although the loan transaction of debentures was examined during the course of the original assessment proceedings but subsequent to the conclusion of the assessment proceedings, information was received that these funds were unexplained funds of the Petitioner which were routed through various companies located in tax havens and, therefore, reopening was initiated.
