Dismissed

Gatsby Trading Pvt. Ltd. v. Income Tax Officer, Ward 12 (2) (3)

Bombay HC21 Jan 2022WP/200/2020

Case brief

AI extract

What is this about?

The Bombay High Court dismissed a writ petition challenging a notice under Section 148 of the Income Tax Act, 1961, regarding reassessment proceedings initiated due to new information indicating escaped income. The court declined to exercise writ jurisdiction, directing the petitioner to address contentions before the Assessing Officer.

What did the court decide?

Petition dismissed; petitioner directed to take contentions before the Assessing Officer for a personal hearing.

Gatsby Trading Pvt. Ltd. Vs Income Tax Officer, Ward 12 (2) (3) — Income Tax | Bombay HC (2022)

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Digitally signed by GAURI GAURI AMIT AMIT GAEKWAD GAEKWAD Date: 2022.01.21 15:42:39 +0530

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905.WP-200-2020.doc

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

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WRIT PETITION NO.200 OF 2020

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M/s. Gatsby Trading Private Limited ….Petitioner

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 V/s.

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Income Tax Officer, Ward 12 (2)(3) ….Respondent

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----

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Mr. Alok Vajpeyi i/b. Mr. Sankalp Sharma for petitioner.
Mr. Sham V. Walve for respondent.

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 ----

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 CORAM : K.R. SHRIRAM &

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R.N. LADDHA, JJ.
 DATED : 21st JANUARY 2022

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P.C. :

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1Mr. Vajpeyi states that he is instructed by Mr. Sankalp Sharma to
appear for petitioner and Mr. Sharma will file his Vakalatnama within one
week from today and also serve a copy thereof upon Mr. Walve. Statement
accepted as undertaking to this Court.

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2At the outset, counsel for petitioner was unable to assist the
Court and was not even willing to go on with the matter. We have perused
the petition with the assistance of Mr. Walve.

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3Petitioner is impugning a notice dated 30th March 2019 issued
under Section 148 of the Income Tax Act, 1961 (the said Act) for
Assessment Year 2012-2013 and an order dated 16th December 2019
disposing the objections to the initiation of reassessment proceedings.

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4 The reasons for reopening read as under :

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The assessee company is a Pvt. Ltd. Company. The return of
income was filed by the assessee on 30.09.2012 declaring
total income (-) 22,905/-. Processing u/s 143(1) of the Act

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Gauri Gaekwad

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905.WP-200-2020.doc

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was completed on 13.03.2014 subsequently the case was
selected for scrutiny and order u/s 143(3) of the Act was
passed on 11.03.2015 accepting the loss of 22,905/-.

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2. In this case, information has been received from O/o DDIT
(Inv.), Unit 4(2), Mumbai vide letter No.DDIT (Inv.)-4(2)/
Information/KRP/2018-19 dated 15.03.2019 that in the
account no.111611100001839 of M/s Backer Trading Pvt.
Ltd. with Andhra Bank huge credits from Demrock and
Sterling Biotech are seen which are immediately passed on to
Gatsby Trading Pvt. Ltd. along with some other parties.
Statements under oath of the Directors of M/s Backer
Trading Pvt. Ltd. were recorded and it was found that both
the directors were non-filers of Income-tax Returns for A.Y.
2012-13. It was also seen from the ITR of M/s Backer
Trading Pvt. Ltd. has shown meager income of Rs.1,76,823/-
vis-a-vis its turnover for A.Y. 2012-13.

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3. The investigations made revealed that M/s Backer Trading
Pvt. Ltd. is not involved in any genuine business but is an
entity used for routing transactions of accommodation
entries. Further it is seen that huge credits to the tune of
Rs.2,71,06,36,923/- have been received in the Bank accounts
of M/s. Gatsby Trading Private Limited.

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4. On verifying the details available and furnished by the
assessee during the course of its assessment proceedings, it is
ascertained that the loans and advances received as
submitted by the assessee does not reflect these credits
amounting to Rs.2,71,06,36,923/- in its books of account.
The whole gamut of bank transactions are not reflected in
the books of account of the assessee and when seen in light
of the information that the assessee company is involved in
transactions with M/s Backer Trading Pvt. Ltd. which has
been established as a routing entity with no genuine
business, it is inferred at the above stated income of the
assessee has escaped assessment.

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5We have considered the reasons and the proposed reopening is

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in view of the information that was received after the case was selected for

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scrutiny and order under Section 143 (3) of the said Act was passed.

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6In view of the above, we do not wish to exercise our jurisdiction

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under Article 226 of the Constitution of India.

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Gauri Gaekwad

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7 Petition dismissed accordingly.

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8 Petitioner may take all contentions before the Assessing Officer,

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who shall grant personal hearing to petitioner before passing the assessment

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order.

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(R.N. LADDHA, J.)

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(K.R. SHRIRAM, J.)

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Gauri Gaekwad

Gatsby Trading Pvt. Ltd. v. Income Tax Officer, Ward 12 (2) (3)

Case brief

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What did the court decide?

Gatsby Trading Pvt. Ltd. v. Income Tax Officer, Ward 12 (2) (3)

Case brief

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