GAUHATI HIGH COURT ISSUES ORDER ON MUKUND SYSTEM AND NETWORKING AND ANR. V/S THE ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX AND ORS.

GUWAHATI, India, Aug. 19 -- Gauhati High Court issued the following order on July 21:

1. These writ petitions are preferred by the assessees assailing the proceedings initiated under Section 147 of the Income Tax Act. It raises similar questions of law and are therefore taken up together for hearing and disposal.

2. In W.P(C) No. 7101/2017; W.P(C) No. 7102/2017; W.P(C) No. 7103/2017 and W.P.(C) No. 7104/2017, the petitioners put into challenge the recording of reasons for issuance of notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), the notice under Section 148 of the Act, the Notice under Sub-Section 2 of Section 143 dated 23.05.2017 as well as the notices under Sub-Section 1 of Section 142 dated 23.05.2017 and 31.10.2017.

3. In W.P(C) No. 7482/2017, the petitioner is a private limited company. The company has submitted its return of income for the assessment years 2010-11 on 14.10.2010 showing total income at Rs. NIL. Subsequently, respondent No. 1 re-opened the case of the writ petitioner under Section 148 of the Income Tax Act, 1961 by issuing of notice dated 31.03.2017 under Section 148 of the Act. In response to the Notice under Section 148 of the Act, the petitioner submitted its return of income on 09.08.2017 and thereafter vide its letter dated 10.08.2017 applied to the respondent No. 1 to provide its ground on which the notice under Section 148 of the Act was issued. The respondent No. 1 vide letter dated 30.08.2017 communicated to the petitioner copy of the reasons recorded for issue of notice under Section 148 of the Act. Hence the writ petition has been filed put into challenge the recording of reasons for issuance of notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), the notice under Section 148 dated 31.03.2017, the notice under Sub-Section (2) of Section 143 dated 06.11.2017 and notice under Sub-Section (1) of Section 142 dated 06.11.2017.

4. Since the learned counsel for the petitioner has urged W.P.(C) No. 7103/2017 before the Court as a lead case, the facts pertaining to the said writ petition are referred to wherever required. However, the specific facts in respect to the other writ petitions will be referred to accordingly.

5. The petitioner company is a private limited company incorporated under the Companies Act, 1956 on the 14th day of February, 2008. The petitioner has registered office at Abhay Chandra Dutta Lane, F.A. Road, Kumarpara, Guwahati-781001. The petitioner is a regular assessee under the Income Tax Act, 1961. The petitioner is represented in the present proceedings by one of the Directors who is arrayed as petitioner No. 2.

6. The case projected before this Court that for the previous Financial year 2009-10 relevant to assessment year 2010-11, the petitioner had earned income related to renting of immovable property and did not commence its business activities on mobile and other telephone connectivity services. It is submitted that it's original return of income under Section 139 voluntarily for the said year on 04.03.2011 disclosing total taxable income as Rs. NIL. Thereafter a search and seizure operation and survey were carried on under Section 132 in the premises belonging to the petitioner company.

*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=eISc8sUCYnQFBVP%2BVeJCOOtgG1Hq%2B%2FGlRHpMsDJZ2ttJ8FmUbrzO6RQG5viJH8Sp&caseno=WP(C)/7482/2017&cCode=1&cino=GAHC010151172017&state_code=6&appFlag=)

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