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IN THE HIGH COURT OF DELHI AT NEW DELHI

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W.P.(C) 7436/2022 & CM APPLs.22677-22678/2022

FIRST SOLAR POWER INDIA PRIVATE LIMITED ..... Petitioner

Through:

Mr.Ved Jain, Advocate with

Ms.Richa Mishra and Mr.Animesh

Tripathi, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 7-1

DELHI & ANR.

..... Respondents

Through:

Ms.Zehra Khan, Jr.Standing Counsel

with Mr.Shray Nargotia, Advocate.

Mr. Kunal Sharma, Sr. Standing

Counsel.

%

Date of Decision: 26^thMay, 2022

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

J U D G M E N T

MANMOHAN, J (Oral):

1.

Present Writ Petition has been filed challenging the Show Cause

Notice dated 17^thMarch, 2022 issued under Section 148A(b) of the Income

Tax Act, 1961 (‘the Act’), Order dated 31^stMarch, 2022 passed under

Section 148A(d), Notice dated 31^stMarch, 2022 under Section 148 of the

Act and the approval granted/taken by Respondent No.1 under Section 151

of the Act.

2.

Learned Counsel for the Petitioner submits that impugned order dated

31^stMarch, 2022 is arbitrary, cryptic and suffers from non-application of

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002112

mind. He states that the source for issuance of the show cause notice is

Petitioner’s returns and records of transactions undertaken in normal course

of business, where no adverse remarks whatsoever have been mentioned

regarding the same.

3.

He states that the impugned order under Section 148A(d) has

arbitrarily contemplated a huge sum of Rs 3,84,12,17,094/- as having

escaped

assessment

without

any

application

of

mind

and

without

considering the nature of business of the Petitioner. He refers to the

petitioner’s detailed clarification regarding each information relied in his

reply dated 24^thMarch, 2022 which in tabular form is reproduced

hereinbelow:-

Information relied upon in Order

under Section 148A(d)

Remarks

Interest under Section 194A from

M/s Kodangal Solar Parks Private

Limited of INR97,083/-

The assessee has earned an interest

income on unsecured loans given to

Kodangal

Solar

Parks

Private

Limited

which

has

been

duly

recorded and reported under the head

“Other Income – Interest income on

unsecured

loans”

of

INR

4,37,66,327/- (refer Note No:21 of

the financial statements).

Fee

under

Section

194J

from

M/s.Winsol

Solar

Fields

(Polepally) Private Limited of INR

24,086/-

During the relevant assessment year,

the assessee has provided business

support services to M/s. Winsol Solar

Fields (Polepally) Private Limited

which has been duly recorded and

reported under the head “Revenue

from Operations – Business Support

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002112

Services” of INR 3,42,22,691/- (refer

Note

No:20

of

the

financial

statements)

Interest under Section 194A from

M/s.Tandur Solar Power Private

Limited of INR 24,725/-

The assessee has earned an interest

income on unsecured loans given to

Tandur Solar Power Private Limited

(presently known as “Suntree Solar

Energy Private Limited”) which has

been duly recorded and reported

under the head “Other Income –

of INR 4,37,66,327/- (refer Note No:

21 of the financial statements).

SFT-005: Time Deposit in Yest

Bank

Limited

of

INR

3,51,29,78,667/-

The assessee has made the term

deposits

(commonly

TDR/FDR) withYes Bank from time-

to-time basis during the year in

question

and

amount

of

INR

3,51,29,78,667/-

represents

the

aggregate amount of TD’s

made

during the year under consideration.

The breakup of the TD’s of INR

3,51,29,78,667/-

(covering

issue, date of maturity) made during

the

year

are

enclosed

for

your

reference as Annexure-5;

Fee under Section 194J from M/S.

Anantapur Solar Parks Private

Limited of INR 1,66,31,476/-

During the relevant assessment year,

the assessee has provided business

support services to M/s. Anantapur

Solar Parks Private Limited which

has been duly recorded and reported

under

the

head

“Revenue

from

Operations

Services” of INR 3,42,22,691/- (refer

This is a digitally s