“Escaped Income Condition Not Satisfied” – Bombay High Court quashes computer opinion against Tata Son Ltd for 2003-04
In a judgment delivered earlier this month, the Bombay High Court quashed an opinion issued by the income tax authorities for the 2003-2004 financial year against Tata Sons Ltd – holding company of the Tata group companies .
The company challenged this before Commissioner of Income Tax (Appeals)-XXXIII, Mumbai (“CIT-[A]’). On March 16, 2007, the CIT-[A] passed an order granting the company relief, based on which the AO passed a new order and determined the revised total income of the company at Rs 98,55,51,776.
The authorities’ lawyer Arvind Pinto justified the reopening by expressly denying that the notice had been issued after six years and that the grounds recorded by the AO justified the invocation of powers under section 147 of the Act of 1961.
The bench observed that the legal position on the issue of the exercise of the reassessment power under section 147 of the 1961 Act was crystallized.
Case title: Tata Sons Limited v Deputy Commissioner of Revenue and others.
Citation: 2022 LiveLaw (Bom) 38