Bombay High Court
Satya Prakash Singh vs The Income Tax Officer-28(3)(1) And 3 ... on 22 April, 2021
Bench: Sunil P. Deshmukh, Abhay Ahuja
wpl-9165-2021
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION (L) NO.9165 OF 2021
Satya P. Singh .. Petitioner.
v/s.
The Income Tax Officer-28(3)
(1) & Others .. Respondents.
Mr. Percy J. Pardiwalla, Sr. Advocate with Mr. Dharan Gandhi, Mr.
Amrendra Sinha with Mr. Vijay Jha, for the Petitioner.
Mr. Sham Walve, for the Respondents.
CORAM: SUNIL P. DESHMUKH &
ABHAY AHUJA, JJ.
DATE : 22nd APRIL, 2021.
P.C:-
The challenge in this Petition is to notice dated 28 th March, 2019 issued under Section 148 of the Income Tax Act, 1961 by Respondent No.1 and the subsequent order dated 29 th March, 2021, disposing of objections of the Petitioner. Admittedly, the re-opening is beyond a period of four years.
2 Learned Sr. Counsel for the Petitioner, Mr. Pardiwalla, has taken us through the various aspects involved in the matter to impress upon us that the primary facts in the matter had been fully and truly disclosed to the Assessing Officer at the time of original assessment under Section 143(3) pursuant to which assessment order dated 27 th February, 2015 has been passed. He refers to that in paragraph 5 of the original Assessment Order, the issue with regard to Loha Ispaat Ltd. had already S.R.JOSHI 1 of 4 ::: Uploaded on - 23/04/2021 ::: Downloaded on - 08/09/2021 05:28:30 ::: wpl-9165-2021 been visited as notice under 133(6) was sent to the supplier which had been returned to the Respondents with the remark "LEFT". Mr. Pardiwala, learned Senior Advocate draws our attention to paragraphs No.3 and 4 of the reasons to re-open dated 29th March 2021 reading thus, "3. The Director General of Income Tax (inv.) had forwarded information regarding assessee's who had taken bogus purchase bills to reduce and suppress profits. The Sales Tax Authorities had taken action against a number of Hawala Dealers who had issued bogus purchase bills to various assessee's of Mumbai to suppress their profits. On the basis of this action sales Tax Authorities had forwarded the names of the hawala Bills and had either suppressed or reduced profits. In the instant case, Satya Prakash Singh, Proprietor of M/s Pioner Exim as per the information received had taken bogus purchase bills to suppress the profit. The details of bills and parties from whom bills have been taken as under.
A. No. AY Name of Party Amount
whom bogus bill
has been taken
1 2012-13 Loha Ispat Ltd 150,77,63,478/-
4. A notice u/s 133(6) was issued to M/s Loha Ispat Ltd during assessment proceedings which return unserved by postal authority."
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and submits that the very facts are being reconsidered which were treaded on before, during the assessment proceedings. He submits that the impugned notice is merely an attempt to reagitate an issue which has already been concluded. This is nothing but a case of change of opinion and cannot be permitted. He, therefore, submits that the impugned notice and subsequent order are un-sustainable.
3 Learned Counsel for the Revenue Mr. Walve, submits that after original Assessment Order had been passed, it transpired that the Director General of Income Tax (Investigation) has for forwarded information regarding Assessees who had taken bogus purchase bills to reduce and suppress profits. He submits that the Sales Tax Authority had taken action against number of Hawala Dealers who had issued bogus purchase bills to various Assessees to suppress their profits and on this basis, Sales Tax Authority had forwarded the names of the Hawala Dealers who had either suppressed or reduced profits which includes the name of the Petitioner who is a Proprietor of M/s. Pioneer Exim. It is submitted that as per information received, Petitioner has taken bogus purchase bills from M/s. Loha Ispaat Ltd. for an amount of Rs.150,77,63,478/- for Assessment Year 2012-13. He submits that in that view of the matter, the notice dated 29 th March, 2021 from National e- Assessment Centre, Delhi had been issued as the Petitioner has not disclosed fully and truly all material by making wrong claim of expenditure of account of payment to sub-contractor and, therefore, there is reason to believe that income chargeable to tax has escaped assessment.
4 Having heard learned Counsel for the parties, prima facie, it appears that there is some merit in the case.
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5. Till the next date, there shall be ad-interim relief in terms of prayer clause (d) which reads thus:-
" that pending the hearing and final disposal of the present petition, this Court may be pleased to stay the operation of the notice dated 28th March, 2019 ("Exhibit E"), subsequent proceeding which has been undertaken in consequence of the said notice and the subsequent order dated 29th March, 2021 ("Exhibit T") and grant an injunction restraining the Respondents, their subordinates, servants, agents, successors-in-office from taking any steps in furtherance or in implementation of the notice dated 28 th March, 2019 ("Exhibit E") subsequent proceeding which has been undertaken in consequence of the said notice and the subsequent order dated 29th March, 2021 ("Exhibit T")."
6. Stand over to 15th June, 2021.
(ABHAY AHUJA,J.) (SUNIL P. DESHMUKH,J.)
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