1 432-WP 1721-21.odt

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO.1721 OF 2021

Setu Securities Private Limited

]

… Petitioner

Versus

The National Faceless Assessment Centre

]

New Delhi & Ors.

]

… Respondents

Mr. Dharan V. Gandhi for Petitioner.

Mr. Akhileshwar Sharma for Respondents.

CORAM :- K. R. SHRIRAM

&

AMIT B. BORKAR

, JJ.

DATE :- 14

OCTOBER

, 20

21

P. C. :-

1.

Petitioner is impugning Assessment Order dated 23/04/2021

for AY 2018-19 by which Respondent has disallowed sum of

Rs.29,51,28,460/- under Section 68 of the Income Tax Act, 1961

(hereinafter referred to as ‘the Act’) and added that the sum of

Rs.29,51,28,460/- to be income of Petitioner. Respondent has also

initiated penalty proceedings under Section 27AA(1) of the Act.

2.

The very first notice under Section 142(1) of the Act was

issued on 15/01/2020 calling upon Petitioner to provide evidence /

information with regard to 17 items mentioned in the said notice.

URS 1 of 7

UMESH

RAMESH

SHINDE

Digitally signed

by UMESH

RAMESH

SHINDE

Date:

2021.10.21

14:55:27 +0530

2 432-WP 1721-21.odt

Petitioner gave its reply on 20/01/2020. A fresh notice was issued on

07/02/2020 under Section 142(1) of the Act to which Petitioner

responded by its letter dated 14/02/2020 seeking an adjournment of 10

days. Petitioner thereafter, by its letter dated 23/03/2021, gave the

details as sought for earlier by Respondent. Petitioner’s case was

thereafter transferred to the Faceless Scheme and the first notice under

the Faceless Scheme was issued on 24/03/2021 calling upon Petitioner to

furnish on or before 11.26 hrs. of 30/03/2021 the accounts and

documents specified in the annexure to the notice. If one peruses the

annexure, the 17 items mentioned therein are identical to the 17 items

mentioned in the annexure to notice dated 15/01/2020. Notwithstanding

the replies given by Petitioner, Respondent chose to issue its notice dated

24/03/2021 seeking the same documents / information. Petitioner, by its

letter dated 30/03/2021, informed the Respondent that most of the

details have been provided and the remaining would be provided within 7

days. This is followed by another notice dated 20/04/2021 with which

Petitioner has a grievance, whereby Petitioner was called upon to show

cause why assessment should not be completed as per draft Assessment

Order. Paragraph 2 says, ‘A draft assessment order proposing to modify

your returned income and/or sum payable is reproduced as under :’. In

our view, there has been total non-application of mind by the person who

issued the notice because the said notice, by no stretch of imagination,

URS 2 of 7

3 432-WP 1721-21.odt

can even be called a draft Assessment Order. In the notice, what

Respondent has sought are further details and documents. In paragraph

1, it is stated ‘…… you are requested to furnish copy of bank statement to

justify the source of repayment of loans’, in paragraph 2, it says ‘you are

requested to please furnish the source of these loans received,

documentary evidences in shape of ITR, balance sheet and bank

statement to verify the genuineness of these freshly introduced loans’, in

paragraph 3, it says ‘you are requested to please give details as under :’, in

paragraph 4, it says ‘you are requested to provide copy of ITR, PAN,

computation of inc