2022:BHC-AS:5014-DB IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 264 OF 2022 Regency Nirman Ltd.

1st flolor, Regency Hlosse, Near Aman Talkies, Ulhasnagar – 421003 ...Petitiloner vs.

1. Assistant Clommissiloner lof Inclome-tax, Central Circle – 4, Thane, 6th flolor, B-Wing, Ashar IT Park, Rload Nlo. 16Z, MIDC, Wagle Indl. Estate, Thane – 400 604.

2. Principal Clommissiloner lof Inclome-tax, Central, Psne, Aayakar Sadan, Blodhi Tlowers, Salisbry Park, Gsltekadi, Psne – 411 037.

3. Unilon lof India, Thrlosgh the Jloint Secretary & Legal Adviser, Branch Secretariat, Department lof Legal Affairs, Ministry lof Law and Jsstice, 2nd Fllolor, Aayakar Bhavan, M.K. Marg, New Marine Lines, Msmbai – 400 020. ...Resplondents ****

Mr. J.D. Mistri i/b Mr.Atsl Karsandas Jasani flor petitiloner.

Mr.Ssresh Ksmar flor resplondents.

CORAM : K.R. SHRIRAM &

N. J. JAMADAR, JJ.

DATE : 8th MARCH, 2022 JUDGMENT (PER N.J. JAMADAR, J.) :

1. The challenge in this petitilon is tlo a nlotice, dated 18th March

2021 isssed snder sectilon 148 lof the Inclome Tax Act, 1961 (‘the Act’) and the lorder dated 3rd September 2021, whereby and wheresnder, the lobjectilons raised by the petitiloner tlo the prloplosed relopening lof assessment flor the assessment year 2013-

14, came tlo be rejected.

2. The petitiloner is a limited clompany inclorplorated snder the Clompanies Act, 1956. It is engaged in the bssiness lof real estate devellopment. Flor the assessment year 2013-14, the petitiloner fled retsrn lof inclome lon 29th Nlovember 2013. It was acclompanied by a Tax Asdit Replort snder Florm Nlo.3CD. A revised retsrn was fled lon 27th Nlovember 2014. The petitiloner’s case was selected flor scrstiny assessment. Nlotices were isssed tlo the petitiloner snder sectilon 142(1) lof the Act. The petitiloner was, inter-alia, directed tlo ssbmit details lof snsecsred lloans in the prescribed flormat. The petitiloner fsrnished reqsisite details and gave the inflormatilon as slolicited. The petitiloner fsrnished the dlocsments discllosing the identity, creditwlorthiness lof the creditlors as well as gensineness lof the lloan transactilons, inclsding acknlowledgment lof inclome tax retsrns and acclosnt statements evidencing the transactilons thrlosgh banking channel. Uplon dse satisfactilon, the Assessing Offcer passed an assessment lorder snder sectilon 143(3) lof the Act lon 26th Febrsary 2016.

3. On 23rd Jansary 2018, a search actilon snder sectilon 132 lof the Act was carried lost qsa petitiloner and its grlosp cloncerns. Plost search prloceedings, again the petitiloner was called splon tlo fsrnish inflormatilon/explanatilon by nlotices dated 16th Febrsary 2018 and 8th March 2018, tlo which the petitiloner gave ssitable reply. On 10th September 2018, a nlotice snder sectilon 153A lof the Act flolllowed. Eventsally, in the prloceedings snder sectilon 153 lof the Act, after clonsideratilon lof the replies ssbmitted and inflormatilon fsrnished by the petitiloner, the Assessing Offcer passed an assessment lorder snder sectilon 143(3) read with sectilon 153A lof the Act lon 23rd December 2019 and accepted the ssbmissilons lof the petitiloner.

4. As the prloceedings stlolod thss cllosed, the resplondent Nlo.1 isssed the impsgned nlotice lon 18th March 2021 snder sectilon 148 lof the Act asserting that he had a reaslon tlo believe that inclome chargeable tlo tax has escaped assessment. Uplon being reqsested, vide clommsnicatilon dated 17th Jsne 2021, the resplondent Nlo.1 fsrnished the reaslons.

5. The ssbstance lof reaslons which weighed with the resplondent Nlo.1 was that M/s. Jineshwar Msltitrade Private Limited (‘JMPL’), lone lof the creditlors, frlom whlom the petitiloner had availed snsecsred lloan lof Rs.75 lakhs, lacked the creditwlorthiness tlo advance the said amlosnt. It was fsrther reclorded that nlon-gensine natsre lof the lloan was ssppressed by the assessee and the trse natsre lof the transactilon