The Tax Publishers2016 TaxPub(DT) 4656 (Mad-HC) : (2016) 388 ITR 0539 : (2016) 290 CTR 0154 : (2016) 142 DTR 0033

 

Sella Synergy India (P.) Ltd. v. ITO & Anr.

 

INCOME TAX ACT, 1961

--Reassessment--Notice under section 148Assessee contending that taxable income would be 'nil' even after reassessment--Maintainability of writ--Where AO issued a notice under section 148 which was admittedly valid and assessee challenged the same through writ petition on the ground that taxable income would be 'nil' even after reassessment and there was no loss of revenue to the department, the writ was not maintainable and assessee would raise such factual issues before the AO.--AO issued a notice under section 148 on the ground that assessee had claimed capital loss arising on sale of asset as a business loss. Assessee filed a writ petition contending that even if loss on sale of asset is ignored for the purpose of computing loss from business, the taxable income would still be 'nil' even after this adjustment, furthermore, the said loss was not carried forward and set off against the income of subsequent years, therefore, there was no loss of revenue to the department. Revenue submitted that no revenue loss or not carrying forward the loss was not relevant for the purpose of reassessment as penalty under section 271(1)(c) could be levied. Held: Notice under section 148 could not be interfered with on the ground that there was no loss of revenue or assessee did not carry forward the loss. The notice was valid and assessee, being granted the liberty by the AO to submit objections with regard to reopening of assessment, would raise factual issues before the AO and writ petition for quashing the notice under section 148 was not maintainable.

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