IMPORTANT POINT
The principle that once a query is raised and answered, the Assessing Officer forms an opinion, making the reassessment proceedings invalid.

JUDGMENT

[Physical Hearing/Hybrid Hearing (as per request)]

Rajiv Shakdher, J. (Oral)

1. This writ petition seeks to challenge the notice dated 30.03.2018 issued under Section 148 of the Income Tax Act, 1961 [in short, "the Act"] and the order dated 24.09.2018 disposing of the objections filed on behalf of the petitioner/assessee.

2. When the writ petition was listed before the court for the first time, a coordinate bench, while issuing notice, broadly etched out the issue which arises for consideration in this case. The coordinate bench alluded to the fact whether the material which was considered in the earlier reassessment round i.e., in 2015, was also the subject matter of reassessment in the fresh proceedings initiated by the Assessing Officer (AO).

3. It is in these circumstances that the court restrained the respondent/revenue from passing final orders in the "fresh impugned reassessment proceedings" during the pendency of the writ action.

4. To adjudicate upon the instant writ action, the following broad facts are required to be noticed.

4.1. The petitioner, formerly known as Priti Mercantile Company Ltd., filed its Return of Income (ROI) for the Assessment Year (AY) 2011-12 on 30.09.2011. The ROI declared the petitioner's income as Rs.1,52,47,940/-. Concededly, the said ROI was processed under Section 143(1) of the Act.

4.2. Nearly four years later, a notice dated 17.09.2013 was issued to the petitioner under Section 148 of the Act [hereafter referred to as the "2013 notice"].

4.3. In response to the said notice, the petitioner filed a ROI, which was similar to the return filed on 30.09.2011.

4.4. It appears that the reasons recorded by the AO for triggering reassessment proceedings were supplied, not along with the notice issued under Section 148, but thereafter.

4.5. Upon receipt of the reasons to believe recorded by the AO for triggering the reassessment proceedings, the petitioner filed its objections dated 26.11.2013, which was received by the respondent/revenue on 13.12.2013.

4.6. Curiously, the AO did not dispose of the objections, and instead, via communication dated 17.12.2013, informed the petitioner that they would be considered at a later date, albeit before reassessment proceedings are completed.

4.7. The AO, thus, instead of disposing of the objections, issued a notice under Section 143(2) of the Act to the petitioner, along with the aforementioned letter.

4.8. This was followed by a notice dated 15.01.2014. This notice was issued under Section 142(1) of the Act.

4.9. Given the fact that the AO had not disposed of the objections, the petitioner filed a letter dated 29.01.2014.

5. Once again, the AO via communication dated 11.02.2014 indicated to the petitioner that the objections would be disposed of before the completion of reassessment proceedings. As was the position earlier, the AO instead enclosed with the said communication a notice under Section 142(1) of the Act.

5.1. The AO continued with this approach and thus issued notices under Section 142(1) of the Act to the petitioner on 24.02.2014 and 08.09.2014.

5.2. The record shows that finally the objections were disposed of on 08.09.2014.

5.3. It appears that after the disposal of the objection, once again, the AO issued a notice dated 15.01.2015 to the petitioner wherein, he, inter alia alluded to the search conducted on one Mr S.K.Jain, which revealed that the petitioner was a beneficiary of an accommodation entry obtained from an entity named Transnational Growth Fund Ltd. [TGFL].

5.4. It was indicated that the petitioner had availed an accommodation entry amounting to Rs.50 lakhs. Accordingly, the petitioner was called upon to show cause as to why Rs.50 lakhs ought not to be added to its income.

5.5. The petitioner responded to the said notice via communication dated 29.01.2015. In the response, the petitioner took the stand that it had received Rs.50 lakhs as a loan from TGFL in the Financial Year (FY) 2010-11 [AY 2011-12] through banking channel. Furthermore, th