W.P.(C)--12360/2018. Case: BEST CYBERCITY (INDIA) PVT. LTD. Vs. INCOME TAX OFFICER, WARD 4(3) & ANR.. High Court of Delhi (India)
| Case Number | W.P.(C)--12360/2018 |
| Citation | NA |
| Judgement Date | May 21, 2019 |
| Court | High Court of Delhi (India) |
$~21 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12360/2018 & CM Appl. No. 47877/2018 (stay)
BEST CYBERCITY (INDIA) PVT. LTD. ..... Petitioner Through: Mr. Salil Kapoor, Mr. Sumit Lal
Chandani, Ms. Ananya Kapoor & Mr. Sidharth Kanwar, Advocates versus
INCOME TAX OFFICER, WARD 4(3) & ANR. ..... Respondents Through: Mr. Zoheb Hossain, Sr. Standing counsel with Mr. Piyush Goyal, Advocates for Revenue
CORAM:
JUSTICE S.MURALIDHAR JUSTICE I.S.MEHTA
O R D E R % 21.05.2019
Dr. S. Muralidhar, J. :
1. The Petitioner challenges a notice dated 29th March, 2018 issued Income Tax Officer, Ward 4(3) (hereafter Assessing Officer, AO) Section 147 read with Section 148 of the Income Tax Act, 1961 seeking re-open the assessment for the Assessment Year (AY) 2011-2012 as the order dated 26th October, 2018 rejecting the Petitioner‟s objections to the re-opening of the assessment.
Relevant facts
2. The Petitioner is a company engaged in real estate development related services. It filed its return of income for the AY in question on September, 2011 declaring a loss of Rs. 22,534/-. The return was picked up
for scrutiny and a questionnaire dated 23rd October, 2012 was issued AO to the Petitioner inquiring about various aspects. Along with its dated 30th October, 2012 the Petitioner submitted all the relevant statements. A further reply was submitted on 6th November, 2012 that copies of the Audit Report, Balance Sheet, Profit and Loss Account & L Account) along with Schedule had already been placed on Details of an unsecured loan of Rs.40 crores obtained by the Petitioner from PACL India Limited („PACL‟) were also reflected in the accounts .
3. Another questionnaire was issued by the AO on 27th November, raising specific questions as regards PACL. The Petitioner submitted reply on 25th January, 2013 furnishing details of the unsecured loan confirmation of accounts. According to the Petitioner it informed the that it had a plan to undertake a joint venture with PACL for development of an IT park but the project did not materialize. Therefore, in the AY, the said amount was refunded to PACL. The statement of Petitione account with Axis bank for the AY in question was already on record. bank statement for AY 2012-2013 along with the ledger account was filed. By a further submission dated 2nd February, 2013 the submitted details of the deployment of funds along with copies of the ledger accounts, showing loans and advances, along with ledger account of According to the Petitioner direct enquiries under Section 133(6) were made by the AO from PACL during the assessment proceedings.
Original assessment order
4. The AO passed an assessment order dated 28th March, 2013 for the AY in
question accepting the Petitioner‟s return as filed. The order was a short one and reads as under:
“A search and seizure operation u/s 132 of the IT Act was carri at the business premises of M/s Best group at H-8, Best Plaza, Subhash Place, Pitampura, New Delhi as well as on premises of the directors and their family members on 28th
2011. The group is carrying out the activities of real development and related services. The group is managed by Harjeet Singh, Sh. Anu Aggarwal and others M/s Best Cyber (India) Private Limited is one of the companies of this group. Case of the assessee company was centralized with Central Circle-11, Delhi. A notice under section 142(1) was issued on 11-10 Thereafter a questionnaire issued under section 142(1) on 23-10 of the Income Tax Act, 1961. The assessee company filed its return of income declaring loss of Rs. (22,534)/- for the Assessment 2011-12 on 20-11-2012.
2. Sh. Rajesh Arora, Chartered Accountant, Representatives, attended the assessment proceedings in to notices under section 142(1) & 143 (2) of the Income Tax 1961 from time to time. The details/information produced/furnished during the course of assessment proceedings has been examined placed on record. The case was discussed with the assessee on various related issues and submissions put forth.
After discussion income of assessee assessed at Nil
Assessed. Allow credit of prepaid taxes. Charge interest as per Issue demand notice and challan.
3. This order has been issued...
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