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TMI Blog2024 (9) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the case." 2. The challenge is to the reassessment action initiated pursuant to a notice dated 30 March 2019 and pertains to Assessment Year [A.Y.] 2012-13. The notice under Section 148 of the Income Tax Act, 1961 [Act] alludes to the following facts. 3. The respondents take note of the Return of Income which was filed by the petitioner for A.Y. 2012-13 on 27 November 2012. The Assessing Officer [AO] appears to have taken note of a letter dated 05 March 2019 received from the Department of Mines and Geology of the State of Karnataka, carrying information in respect of iron ore mines e-auctioned during the Financial Year [FY] 2011-12. The auctions were settled in favour of the petitioner and as per the information and reports received by the respondents the bid money amounting to INR 167,75,60,000/- deposited. The respondents, however, took note of the petitioner having disclosed iron ore sales at INR 160,93,69,636/-. It is on the aforesaid basis that they appear to have formed the opinion that there was a non-disclosure of income amounting to INR 6,81,90,364/-. 4. This becomes apparent from a reading of the following paragraphs forming part of the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rs. 167,75,60,000/-, the information is to be sent to assessing officer for taking remedial measure in this case. 4. Enquiries made by the AO as sequel to information collected/ received: In this case, the information received by (I&CI) office through external sources or external department. Such the information has received externally, this is not a case of internal examination. The information has been received from department of Mines and Geology. The department of mines and geology has clearly mentioned that it has got total receipts of Rs. 167,75,60,000/- and therefore this information has been received by department of external agency. Further, enquiry has also been conducted by Income Tax Department and it has been found that total Iron Ore e-auctioned sales has been of Rs.160,93,93,639/-. Therefore, assessee has undisclosed income detected is Rs. 6,81,90,364/-. Further, notice u/s 133 (6) is issued to assessee on 22.03.2019 which is being reproduced below:- "In this connection, you are required to furnish the following details/ documents: (a) Furnish a short note on the business activities carried out by your company/firm. (b) Furnish copy of account of Vedanta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion done by you in iron ore sale. You are also required to submit all the necessary documents/confirmation which could determine genuinity and credibility of such transactions, Also you are required to submit as to how decision was taken to auction these iron ores alongwith documentary proof, if any available with you. Also furnish copy as to how much receipts did department of mines and geology get after auctioning of these ores. The details are mentioned below:- xxxx xxxx xxxx Thus, sufficient opportunity was given to assessee to produce all the documents as was submitted during assessment proceedings. However assessee has not replied concretely w.r.t. this questionnaire. Further, complete details of iron ore auctioned was given to assessee. However assessee submitted the previous reply only which was submitted by assessee before ADIT(C&IC)-2, Bangalore. Therefore, The reply of assessee is considered and not acceptable as (C&IC)-2, Bangalore has forwarded the information after analysing submission made by assessee previously. 5. Findings: 5.1 From the above it is evident that the source of such of income of Rs. 6,81,90,364/-seems to be not assessed and brought to tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as prescribed to be 01 April 2011. 10. Pursuant to the aforesaid scheme coming to be accorded sanction by the High Courts of Bombay and Madras on 03 April 2013 and 25 July 2013 respectively, the petitioner filed revised audited financial statements on 21 March 2014. It becomes pertinent to note that during the course of assessment which ensued thereafter, a notice under Section 142(1) of the Act dated 08 March 2016 came to be issued requiring further information from the petitioner, including details of mine wise iron ore extracted or purchased as also the quantity exported and sold. This would be evident from a perusal of query number 7 which appears at pdf page no. 435 of our digital record. 11. In response to the aforesaid notice, the petitioner vide its communication of 18 March 2016 provided the required information as would be evident from its response comprised in Paragraphs 5, 6 and 7 and which are reproduced hereinbelow:- "5. With respect to your query at Sr. No.7, the details of iron ore production, purchases, export/sales and stock of the Iron Ore Division is attached herewith as Annexure 10. The percentage of ferrous content in quantity Mined/Purchased/Exported/ Sol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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