Allowed

Rustomjee Evershine Joint Venture v. Assitant Commisioner of Income Tax - Central Circle 2(4) and 2 Ors.

Bombay HC20 Dec 2021WP/3405/2019

Case brief

AI extract

What is this about?

The High Court allowed the writ petition quashing a Section 148 notice and the subsequent order dated 5th October 2019, holding that reopening was based merely on change of opinion after expiry of limitation.

What did the court decide?

Writ of Certiorari issued to quash the notice dated 27.3.2019 and the order dated 5.10.2019

What the court decided

Rustomjee Evershine Joint Venture Vs Assitant Commisioner of… — Income Tax | Bombay HC (2021)

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Digitally signed by GAURI GAURI AMIT GAEKWAD AMIT Date: GAEKWAD 2021.12.21 10:28:59 +0530

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407.WP-3405-2019.doc

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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WRIT PETITION NO.3405 OF 2019

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Rustomjee Evershine Joint Venture ….Petitioner

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 V/s.

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Assistant Commissioner of Income Tax
Central Circle - 2(4) & Ors. ….Respondents

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----

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Mr. Harsh M. Kapadia for petitioner.
Mr. Suresh Kumar for respondents.

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 ----
 CORAM : K.R. SHRIRAM &
AMIT B. BORKAR, JJ.
 DATED : 20th DECEMBER 2021

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P.C. :

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1Petitioner is impugning a notice dated 27th March 2019 issued
under Section 148 of the Income Tax Act, 1961 (the said Act) for
Assessment Year 2012-2013 and the order dated 5th October 2019 rejecting
the objections.

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2We have considered the reasons annexed to the petition. The
notice under Section 148 of the said Act being issued after the expiry of four
years and and the assessment having been completed under Section 143(3)
of the said Act, the proviso to Section 147 of the said Act applies.
Respondents have to show there was failure to truly and fully disclose
material facts. We have considered the reasons and there is nothing to
indicate there was failure to disclose any material fact. The entire reasons is
based on change of opinion which is not permissible. According to the

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Gauri Gaekwad

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407.WP-3405-2019.doc

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Assessing Officer, the interest expense, which had been allowed earlier as
revenue expenditure, should be allowed as business expenditure in ratio of
the revenue offered from the project and work in progress at the end of the
year. The entire basis starts with "on perusal of the records". Infact when the
case was picked up for scrutiny and the assessment was completed under
Section 143(3) of the said Act, vide order dated 17th March 2015, the
Assessing Officer had accepted petitioner's assessment of total income at a
loss of Rs.19,05,42,694/-.

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3In the circumstances, petition is allowed in terms of prayer
clause - (a) which reads as under :

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(a) that this Hon'ble Court may be pleased to
issue a Writ of Certiorari or a Writ in the nature
of Certiorari or any other appropriate Writ,
Order or direction, calling for the records of the
Petitioner's case and after going into the legality
and propriety thereof, to quash and set aside the
said notice dated 27th March 2019 (Exhibit I)
and the subsequent Order dated 5th October
2019 (Exhibit L).

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4Petition disposed.

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(AMIT B. BORKAR, J.)(K.R. SHRIRAM, J.)

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Gauri Gaekwad

Rustomjee Evershine Joint Venture v. Assitant Commisioner of Income Tax - Central Circle 2(4) and 2 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

Rustomjee Evershine Joint Venture v. Assitant Commisioner of Income Tax - Central Circle 2(4) and 2 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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