SBC Minerals Pvt. Ltd. vs. Assistant Commissioner of Income Tax Circle 22(2), Delhi

Parties Involved

Facts Summary

The petitioner, SBC Minerals Pvt. Ltd., filed a return of income on 17.10.2016 declaring Rs. 7,69,73,060/- as total income. On 16.11.2018, a notice under Section 142(1) of the Income Tax Act, 1961 was issued during scrutiny assessment. On 04.12.2018, the petitioner submitted its response, furnishing all the details including confirmation of unsecured loans. On 22.02.2023, the petitioner received a Show Cause Notice (SCN) under Section 148A(b) proposing reopening of the case for the Assessment Year 2016-17. On 20.03.2023, an order was passed under Section 148A(d) treating the case as fit for reopening under Section 148, quantifying the income escaping assessment at Rs.3,15,09,010/-. Consequently, a notice under Section 148 of the Act was issued on 20.03.2023. The petitioner challenged the impugned notice under Section 148A of the Act, the order passed under Section 148A(d), and the grant of sanction under Section 151 of the Act, arguing that the approval was granted mechanically and without due application of mind.…

Legal Issues

• 1. Whether the approval granted by the Principal Chief Commissioner of Income Tax (PCCIT) under Section 151 of the Income Tax Act, 1961 for the issuance of the order under Section 148A(d) is valid?

Precedents Relied Upon

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