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Sun Tan Trading Co. Pvt. Ltd. Versus The Deputy Commissioner of Income Tax, 1 (3) (1) , Mumbai And Others

2015 (8) TMI 20 - BOMBAY HIGH COURT

Reopening of the assessment - disallow an expenditure claimed for the Assessment Year 2005-06 to 2010-11 under Section 37 as advertisements, sales promotions expenses, etc. on the ground that it was incurred for the exporter of the liquor and appropriately forms part of the consideration payable for the imported goods by the petitioner - Held that:- We notice that the petitioner had sought a copy of the sanction granted to the Assessing Officer in terms of Section 151 of the Act to issue the imp .....

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n to the assessee. We find this attitude of the revenue rather strange. The law requires the sanction to be obtained while issuing notice under Section 151 of the Act as in the absence of appropriate sanction, the proceedings itself are without jurisdiction. We would have expected the revenue to have made a copy of sanction available to the assessee, when sought, of its own. This is the minimum fair play expected of the State. The assessee is not an enemy. The attitude of the revenue seems to be .....

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s to avoid the reassessment proceedings becoming time barred, we make clear that the period of 15 weeks from today would stand excluded for the purpose of computing period of limitation under Section 153 of the Act. - Writ Petition No. 763 of 2015, Writ Petition No. (ST) No. 458 of 2015, Writ Petition (ST) No. 459 of 2015 - Dated:- 23-7-2015 - M. S. Sanklecha And N. M. Jamdar,JJ. For the Appellant : Mr Percy Pardiwalla, Sr Adv. a/w Madhur Agarwal and Atul K Jasani, Advs. For the Respondent : Mr .....

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furnished to the petitioners are identically worded (save the assessment year involved and the amount alleged to have escaped assessment) running into about five pages. The basic ground for reopening of assessment is the order passed by the Customs and Central Excise Settlement Commission enhancing the value of imported liquor for the period 2004-05 to 2009-10 resulted in payment of differential duty of customs of ₹ 58.04 crores. It is on the above basis that the revenue seeks to disallow .....

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s escaped assessment warranting reopening of assessment. The reply filed was a detailed reply running into about nine pages objecting to the exercise of jurisdiction to reopen the assessments. 5. The Assessing Officer by an order dated 15 January 2015 has disposed of the objections filed for the three assessment years under consideration by identically worded order except for the mention of different Assessment Years and it reads as under: "The notice u/s 148 dated 28/03/2014 was issued to .....

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ction it is not mandatory on the undersigned to provide you the copy of the same. 3. As per the investigations carried on by the DRI and the customs department a penalty had been levied to the tune of ₹ 58 crores and similar amount was debited across 6 years by the assessee on sales promotion, discounts, product displays (hereinafter Promotional expenditure) which proves a kind of nexus and these two events cannot be seen separately and all the expenses are to the tune of 25% to 30% approx .....

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epartment by way of nature of penalty and by which expenses are inflated. Hence, you are hereby show caused as to why a negative inference should not be drawn in your case for concealment of the facts and inflation of expenditure by way of debiting promotional expenditure. The above mentioned details should reach the office of the undersigned on or before 19/01/2015 at 4.30 p.m. so as to enable the undersigned to complete the assessment proceedings failure of which the assessment will be complet .....

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e a detailed order but nevertheless must at the very least show consideration of the objections raised by the objector/assessee. Further it is on the basis of the reasons recorded and the order disposing of the objections, that the revenue should be able to establish that the reopening notice is within jurisdiction. 7. In the above circumstances, we set aside the three orders dated 15 January 2015 and restore the issue to the Assessing Officer to enable disposal of the petitioner's objection .....

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