Case Law Details
Ambuj Foods Pvt. Ltd. Vs PCIT (Allahabad High Court)
In the present case, during the original assessment the A.O. had not formed any opinion in respect of the facts regarding routing of funds in the garb of share premium, which surfaced from the information received from the ADIT (Inv.), Unit – 6, Kolkata, the ACIT, Circle – 3 (2), New Delhi and the ITO (Inv.), Unit – 4, Kolkata. It was after receipt of this information, that the A.O. examined the records and found that the petitioner had received funds to the tune of Rs.95,00,000/- by way of routing funds materialized by M/s Radha Fincom Pvt. Ltd. & others, which were found to be merely paper concerns having no existent and real business. In this way, the unaccounted money of the petitioner amounting to Rs.95,00,000/-was routed to its books of accounts.
Regarding the submission of the learned Counsel for the petitioner, that assessment of the petitioner as well as that of M/s Arohul Foods Pvt. Ltd., which is a sister concern of the petitioner, was re-opened under Section 148 of the Act for A.Y. 2012-13 on similar issue, where re-opening of the case in the matter of M/s Arohul Foods Pvt. Ltd. was quashed by the ITAT, Lucknow Bench vide order dated 11-08-2021, it has been stated in the Counter affidavit that the department has not accepted the order of the ITAT and has challenged the order by filing an appeal under Section 260 A of the Act. Even otherwise, an order passed by the ITAT would not be relevant when the validity of the re-assessment is being examined by this Court in a Writ Petition.
Regarding the petitioner’s submission that the proceedings initiated after a lapse of more than four years are barred by the First Proviso appended to Section 147 of the Act, we find that Section 147 of the Act, as it stood at the relevant time, was as follows: –
“147. Income escaping assessment.— If the Assessing Officer, has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in Sections 148 to 153 referred to as the relevant assessment year):
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