|
Case Title |
RISHI GANGA POWER CORPORATION LTD. vs ASSISTANT COMMISSIONER OF INCOME TAX |
|
Court |
Delhi High Court |
|
Honorable Judges |
JUSTICE RAJIV SHAKDHER JUSTICE GIRISH KATHPALIA |
|
Citation |
2023 (10) GSTPanacea 254 HC Delhi W.P.(C) 3167/2020 |
|
Judgement Date |
31-October-2023 |
The central focus of the current writ action revolves around the legality of the assessment orders and notices issued by the revenue authorities (collectively referred to as “revenue”). Rishi Ganga Power Corporation Ltd. (RGPCL), the petitioner, has brought forth two sets of orders and notices for challenge through this writ petition.
The first set pertains to an order dated 21.11.2019 and a demand notice dated 22.11.2019. The order of 21.11.2019 was issued by the revenue due to RGPCL’s failure to respond to notices issued under Section 142(1) of the Income Tax Act, 1961 (“1961 Act”). This order imposed a penalty of Rs. 10,000 on RGPCL under Section 272A(1)(d) of the 1961 Act, with the corresponding demand notice seeking recovery of this amount.
The second set includes an order and demand notice both dated 06.12.2019. The assessment order dated 06.12.2019 was formulated under Section 143(3) of the 1961 Act concerning Assessment Year (AY) 2017-18. This assessment determined RGPCL’s income at Rs. 28,93,60,000, in contrast to a declared loss of Rs. 3,13,43,192. The assessed income stemmed from an addition under Section 68 of the 1961 Act concerning unexplained credits. Additionally, the Assessing Officer (AO) initiated penalty proceedings against RGPCL under Section 271AAC of the 1961 Act in the same assessment order.
Consequently, a demand totaling Rs. 12,05,47,497 was raised through a notice dated 06.12.2019, granting RGPCL 30 days to settle the tax demand.
For the sake of convenience, the penalty order from 21.11.2019, the corresponding demand notice from 22.11.2019, the assessment order, and the subsequent demand notice from 06.12.2019 are collectively referred to as “impugned orders and notices” unless specified otherwise by context. The crux of the matter rests on the legality and validity of these orders and notices as contested by RGPCL in the writ petition.