9911796707
TMI Blog2018 (2) TMI 1835X X X X Extracts X X X X X X X X Extracts X X X X ..... any is engaged in the business of marketing and trading of Pharmaceutical products. For the assessment year 20102011, the petitioner had filed original return of income on 13.09.2010 declaring his total income as Rs. 7,68,37,800/. Alongwith the return filed by the petitioner, copies of audited accounts along with original records duly certified by the auditors in statutory forms were filed by the petitioner. The Balance Sheet, Profit & loss Account, etc, with schedules and notices to the accounts certified by the auditors were also filed by the petitioner. The return of Income Tax was processed under Section 147 (1) of the Act and thereafter, the case of the petitioner was selected for scrutiny and notice under Section 143(2) of the Act was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be allowed as business expenditure. 3. In view of the above, I have reason to believe that the assessee has concealed the income to extent of Rs. 2,23,65,861/within the meaning of the provision of Section 147 of the I.T. Act, 1961. Hence it is a fit case for issuing notice u/s. 148 of the I.T.Act, 1961 to M/s. Eris Life Sciences Pvt. Ltd. for A.Y. 201011." 3. On receipt of the reasons by the petitioner, certain objections were filed before the respondent dated 28.07.2017. The objections submitted by the petitioner were dismissed by the respondent by an order dated 06.10.2017. As per the contention of the petitioner, various objections were not dealt with by the respondent and therefore, this petition was filed challenging the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as recorded reasons on the basis of the information available on the records only. That petitioner has made disclosure regarding both the issues for which assessment was sought to be reopened and therefore, it was requested by the learned counsel for the petitioner to quash and set aside the impugned notice issued under Section 148 of the Act. 6. Learned Counsel for the respondent Mrs. Mauna Bhatt vehemently opposed the submissions made by the petitioner and submitted that after the assessment was made by the petitionerCompany, it was noticed that the petitioner/assessee has debited marketing expenditure of Rs. 2,23,65,861/and has paid it in foreign currency during the previous year i.e. financial year 20092010 relevant to assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds it was found that the assesse has paid marketing expenditure of Rs. 2,23,65,861/in foreign currency during the previous year i.e. F.Y. 200910. The assessee company has debited Rs. 44,67,04,666/on account of Marketing Expenses in Profit and Loss Account. The assessee has shown domestic sales of Rs. 95,54,93,707/and has not made any export sales. Moreover earning in foreign currency is also shown as NIL. The assessee has not done any business in foreign currency thus the expenditure claimed cannot be allowed as business expenditure." 8. It appears from the documents produced on record that the Assessing Officer found from the record available with him that assessee has paid marketing expenses Rs. 2,23,65,861/in foreign currency during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the part of the assessee to disclose fully and truly material facts. If we peruse the reasons recorded by the Assessing Officer, it reveals that at the time of recording of these reasons, Assessing Officer had examined original assessment records and no fresh material was found by him. Therefore, it can be said that the concerned Assessing Officer has recorded the reasons on the basis of the same fact of materials and records which were available at the time of framing of original assessment. In the case of Dishman Pharmaceuticals and Chemicals Limited V/s. Deputy Commissioner of IncomeTax (OSD) (No. 1) reported in (2010) 346ITR 228 (Guj), the Division Bench of this Court examined the requirement of true and full disclosures in the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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