JUDGMENT :

Firdosh P. Pooniwalla, J.

1. The present Writ Petition challenges a Notice dated 24th March 2021 issued under Section 148 of the Income Tax Act, 1961 (“the Act”) and an Order dated 13th January 2022, rejecting the Petitioner’s objections against the reopening of the Assessment for Assessment Year 2014-15 under the provisions of Section 148 of the Act.

2. The Petitioner is a company engaged in the banking business. The Petitioner e-filed its original Return of Income for the Assessment Year 2014-15 on 27th November 2014, declaring NIL Income after setting off brought forward losses. The Petitioner subsequently filed the Computation of Income, a copy of the Audited Balance Sheet, the Profit and Loss Account and Tax Audit Report under Section 44AB in Form No.3 CD of the Act. The Report dated 25th November 2014, under Section 115JB of the Act, in Form No.29B, was uploaded on the Income Tax website.

3. The Assistant Commissioner of Income Tax-2(3)(1), who was then the Assessing Officer of the Petitioner, initiated scrutiny assessment and issued various notices/questionnaires to the Petitioner. The Assessing Officer issued a Notice dated 28th August 2015, under Section 143(2) of the Act, to the Petitioner.

4. The Petitioner e-filed its revised Return of Income for the Assessment Year 2014-15 on 29th March 2016, once again declaring NIL Income.

5. Further notices and questionnaires were also issued to the Petitioner. A Notice dated 4th July 2016 under Section 142(1) of the Act, along with a questionnaire, was issued to the Petitioner. In the questionnaire, details regarding computation of MAT liability, Bad Debts Written Off and the provisions made in the account and deduction claimed under Section 14A of the Act, with detailed computation, were called for by the Assessing Officer.

6. By its letter dated 27th July 2016, the Petitioner submitted (i) the computation of MAT liability, (ii) explanation regarding the deduction claimed under Section 14Aof the Act and (iii) the details of the Bad Detbs. By its letter dated 11th August 2016, the Petitioner once again furnished the computation of MAT liability and details of Bad Debts. By a letter dated 16th September 2016, the Petitioner again submitted the working of the MAT liability. Further, by a letter dated 18th November 2016, the Petitioner specifically gave complete explanation and details regarding the disallowance under Section 14A of the Act, read with Rule 8D of the Income Tax Rules, 1962 (“the Rules”). Hence, during the course of the assessment proceedings, the Petitioner specifically provided details of Bad Debts Written Off, working of the MAT liability and the disallowance under Section 14A of the Act. The details regarding the above three points were specifically enquired into in the course of original scrutiny assessment and all the facts regarding the same were disclosed to the Assessing Officer.

7. Thereafter, the Assessment was completed and an Assessment Order dated 20th December 2016 was passed under Section 143(3) of the Act. The Assessment Order determined the Income of the Petitioner at NIL under the normal provisions and income of Rs.3,82,53,206/- under Section 115JB of the Act.

8. After a period of over four years from the end of the relevant Assessment Year, i.e., Assessment Year 2014-15, the Assessing Officer issued to the Petitioner a Notice dated 24th March 2021 under Section 148 of the Act.

9. In response to the said Notice, the Petitioner e-filed its Return of Income on 29th May 2021, which was the same as the revised Return of Income filed on 29th March 2016.

10. By a letter dated 23rd July 2021, Respondent No.1 furnished to the Petitioner the reasons for re-opening the Assessment of the Petitioner. The reasons were essentially regarding three issues, i.e., (i) Bad Debts Written Off to the tune of Rs.1,24,96,27,594/- claimed as deduction; (ii) Computation of MAT liability under Section 115JB of the Act; and (iii) Disallowance under Section 14(A) of the Act.