SC dismisses ACIT’s appeal against reassessment due to delay & lack of merit

ACIT Vs Teleperformance Global Service Private Ltd (Supreme Court of India)

The Supreme Court of India dismissed a Special Leave Petition filed by the Additional Commissioner of Income Tax (ACIT) against Teleperformance Global Service Private Ltd. The apex court cited a gross delay of 181 days in filing the petition and found no reason to interfere with the Bombay High Court’s order. The dismissal was based on both the delay and the merits of the case.

The Bombay High Court had earlier quashed a reassessment notice issued to Teleperformance under Section 148 of the Income Tax Act, 1961. Teleperformance had challenged the initial notice, the subsequent order passed under Section 148A(d), and the reassessment notice itself. The company argued that the sanction for reassessment under Section 151 was granted without proper application of mind.

The High Court’s decision centered on discrepancies in the income figures mentioned in the approval documents. While the Assessing Officer’s (AO) draft order under Section 148A(d) mentioned an escaped income of Rs. 97,06,911, the approval document mentioned Rs. 63,16,784. The court observed that these discrepancies should have been noticed by the Additional/Joint Commissioner and the Principal Commissioner of Income Tax (PCIT) during the approval process. Their failure to do so indicated a lack of due diligence and suggested that the approval was granted without carefully reviewing the case.

The High Court rejected the revenue department’s explanation of a “typographical error,” stating that such an error should have been caught during the review process. The court emphasized the responsibility of the approving authorities to thoroughly examine the proposal and the draft order before granting sanction. Because of this lack of due process, the Bombay High Court quashed the order under Section 148A(d) and the consequent reassessment notice issued under Section 148.

Read High Court Judgment: Bombay HC Quashes Reassessment Notice for Section 151 Approval without mind application

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

1. There is a gross delay of 181 days in filing the Special Leave Petition which has not been satisfactorily explained by the petitioner.

2. Even otherwise, we see no reason to interfere with the impugned order passed by the High Court.

3. The Special Leave Petition is, accordingly, dismissed on the ground of delay as well as merits.

4. Pending applications, if any, also stand disposed of.