INTRODUCTION

1. The Petitioner has filed the present petition under Article 226 read with Article 227 of the Constitution of India, impugning a notice dated 30.03.2019 [impugned notice] issued by the Respondent No.1 under

Section 148 of the Income Tax Act, 1961 [the Act] in respect of Assessment Year [AY] 2014-15.

2. By way of the present petition, the Petitioner has essentially challenged the action of the Respondent No.1 to reopen the proceedings for AY 2014-15. It is the petitioner‟s case that the Respondent No.1 did not have any reason to believe that the petitioner‟s income for the AY 2014-15 had escaped assessment and that the impugned notice was issued merely based on conjecture and surmises as opposed to any tangible material.

FACTUAL BACKGROUND

3. The Petitioner was working as an employee in M/s Laureate Education Pvt. Ltd. and filed his return for AY 2014-15 declaring taxable income of Rs. 7,86,72,780/-. The petitioner paid a tax of Rs. 2,07,95,141/- on the declared income.

4. Thereafter, the Petitioner‟s case was selected for scrutiny and notices under Section 143(2) and Section 142(1) of the Act were duly served on the Petitioner. The Petitioner had earned long-term capital gains amounting to Rs. 9,81,71,989/- in the previous year relevant to AY 2014-15. The Petitioner had also incurred short term capital loss on the sale of its shares in India Infotech and Software Ltd. [IISL] and SRK Industries Ltd. [SRK] amounting to Rs. 4,25,94,622/-. The net capital gains offered by the Petitioner for taxation was Rs. 5,55,36,505/-.

5. After examining the documents and hearing the Petitioner, the Respondent No.1 passed the Assessment Order dated 25.07.2016 under Section 143(3) of the Act, accepting the return of income of the Petitioner. However, on 30.03.2019, the Respondent No.1 issued the impugned notice

as he had reason to believe that the income of the Petitioner had escaped assessment for the AY 2014-15.

6. The Petitioner responded to the impugned notice issued by the Respondent No.1 stating that the return originally filed under Section 139(1) of the Act shall be treated as filed in response to the said impugned notice. The Petitioner also requested the Respondent No.1 to provide the reasons for the issuance of the impugned notice, that is, initiating proceedings under Section 147 of the Act. The Respondent No.1 provided a copy of the reasons for initiating the proceedings under Section 147 of the Act, in addition to the sanction obtained from the Additional Commissioner of Income Tax/Respondent No.2.

7. The Petitioner filed detailed objections to the impugned notice vide letter dated 12.09.2019 to the Respondent No.1, who disposed of the objections raised by the Petitioner vide Order dated 24.09.2019. The Respondent No.1 maintained that the reopening of the assessment proceedings under Section 147 of the Act by way of issuance of the impugned notice for AY 2014-15, was in accordance with law. Hence, the present petition has been filed by the Petitioner seeking setting aside of the reassessment proceedings initiated by issuance of the impugned notice.

SUBMISSIONS BY THE PETITIONER

8. Learned Counsel for the Petitioner submitted that the Petitioner raised objections to the issuance of the impugned notice, however, Respondent No.1 vide Order dated 24.09.2019 upheld the reopening of the assessment under Section 147 of the Act for AY 2014-15, without considering the objections raised by the Petitioner. It was submitted that for initiation of

proceedings under Section 147 of the Act, Respondent No.1 has solely placed reliance on the report of the Investigation Wing of the Income Tax Department without any independent enquiry.

9. It was submitted that there is no evidence to show that the Petitioner was in any manner linked to or involved in the wrongful acts highlighted in the report of the Investigation Wing. It was further submitted that the concluded assessment of the Petitioner cannot be reopened merely based on gene