Quashed

Tilak Ventures Ltd. v. Income Tax Officer - 11(3)(1) and 2 Ors.

Bombay HC21 Feb 2022WP/2574/2021

Case brief

AI extract

What is this about?

In WP 2574 of 2021, the Bombay High Court examined the validity of a notice issued under Section 148 of the Income Tax Act, 1961. Finding the reasons for reopening vague and failing to explain material information or escapement, the court quashed the notice.

What did the court decide?

The notice dated 30.03.2021 u/s 148 and the consequential order dated 11.08.2021 are quashed.

Tilak Ventures Ltd. Vs Income Tax Officer - 11(3)(1) and 2 Ors. — Income Tax | Bombay HC (2022)

¶1

Digitally signed by MEERA MEERA MAHESH MAHESH JADHAV JADHAV Date: 2022.02.22 15:54:21 +0530

¶2

413-wp-2574-21.doc

¶3

1 / 3

¶4

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

¶5

WRIT PETITION NO. 2574 OF 2021

¶6

Tilak Ventures Ltd. ….Petitioner
 V/s.
Income Tax Officer-11(3)(1)…Respondent

¶7

----

¶8

Mr. R. S. Padvekar i/b Mr. Tanzil Padvekar for Petitioner
Mr. Akhileshwar Sharma for Respondents-Revenue

¶9

 ----
 CORAM : K.R. SHRIRAM &
N.J. JAMADAR, JJ
 DATED : 21st FEBRUARY 2022

¶10

P.C. :

¶11

1Petitioner is impugning a notice dated 30th March 2021 issued under

¶12

Section 148 of the Income Tax Act 1961, for A.Y.-2015-2016. The reasons

¶13

recorded for reopening has been provided to petitioner. We have considered

¶14

the reasons with the assistance of Mr. Padvekar. The reasons read as under:

¶15

“Reasons for re-opening of assessment u/s 148 of the I. T. Act 1961
for A.Y.2015-16

¶16

M/s Tilak Ventures Limited (PAN: AAACT2373C

¶17

The assessee company formerly known as M/s Out of City Travel
Solutions Ltd., filed the return of income for the year under
consideration on 29.09.2015 declaring loss of Rs.1476/-.
Subsequently, the case was selected for scrutiny and the assessment
was completed on 19.12.2017 on the total assessed loss of
Rs.70,05,060/-. During the year under consideration, the assessee
was engaged in the business of providing financial services.

¶18

The income department has collected information about taxpayers
from various sources such as Annual information Return (AIR),
Central Information Branch (CIB), Tax Deduction at Source (TDS)
Statement and information uploaded by investigation Wings / Central
Circle / I & CI on Insight Portal.

Meera Jadhav

413-wp-2574-21.doc

2 / 3

As per the information summary available in Insight Portal, the
following information relating to Assessment Year 2015-16 pertains to
the assessee.

¶23

`Sr.` `No`	`.` `PAN`	`Name`	`Information` `F.Y.`	`Information` `Type`	`Information` `Value`	`Remarks`
`1`	`AAACT2372`	`TILAK`	`2014-15`	`Others`	`83,04,053`	`Reversal`
	`C`	`VENTURES` `LIMITED`				`trades in` `BSE`

¶24

2.On verification of details available on record, it can be seen that
assessee has concealed income related to reversal trades investment in
BSE.

¶25

3…………………
4…………………
5…………………
6………………….”

¶26

2Mr. Padvekar is at loss as to what reversal trade in BSE means. Mr.
Sharma is not very certain what it could mean and we are also at sea. The
reasons does not disclose anything that could be remotely termed “reasons
to believe income has escaped assessment.” First of all, it does not explain
what reversal trade in BSE means. Secondly, it does not even state on which
scrip there has been any reversal trade in BSE that can be termed
escapement of assessment and thirdly, how could it be even linked to
petitioner. Even in the affidavit in reply, it is simply stated “I say that the
Department was having information that petitioner had made reversal trade
of Rs.83,04,053/- involved in reversal trade. This is the new information
received by respondent no.1…………….”

¶27

3 In the circumstances, we hereby quash and set aside the notice dated Meera Jadhav

¶28

413-wp-2574-21.doc

¶29

3 / 3

¶30

30th March 2021. Consequently, the order dated 11th August 2021 disposing

¶31

the objections is also quashed and set aside.

¶32

4 Petition disposed.

¶33

(N. J. JAMADAR, J.)

¶34

(K.R. SHRIRAM, J.)

¶35

Meera Jadhav

Tilak Ventures Ltd. v. Income Tax Officer - 11(3)(1) and 2 Ors.

Case brief

What is this about?

What did the court decide?

Tilak Ventures Ltd. v. Income Tax Officer - 11(3)(1) and 2 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Mangalore Refinery and Petrochemical Ltd. Vs Deputy Commissioner of INCOME-TAX,RG.-3 (2) Mumbai

Sprint Communications Co. Lp Vs Union of India and Anr.

Mangalore Refinery and Petrochemicals Limited Vs the Deputy Commissioner of Income-Tax and 2 Ors.

Pr. Commissioner of Income TAX-10, Mumbai Vs Procter and Gamble Hygiene and Healthcare Ltd.

Pr Commissioner of Income TAX-10 Vs Prothious Engineering Services Private Ltd.

Pr.Commissioner of Income TAX-10,MUMBAI Vs Procter and Gamble Hygiene and Healthcare Ltd.