Delhi High Court Stays Reopening of Income Tax Assessment Keeping In View The Credentials Of BHEL

BHEL, the petitioner, has challenged the order issued under Section 148A(d) and the notice issued under Section 148 of the Income Tax Act of 1961 for the Assessment Year 2018–19.

Section 148 of the Income Tax Act deals with the issuance of a notice if any income has escaped recomputation or assessment.

BHEL contended that it is a reputed PSU which has been awarded "Maharatna" status in the past. It was under the direct supervision of the Union Government and had strict internal controls. BHEL has returned an income of Rs. 1,707 crores for the Assessment Year 2018-19.

BHEL submitted that it was subjected to a dual audit under the Companies Act as well as by CAG and has been given a clean chit for the Assessment Year 2018-19. A complete scrutiny assessment has been carried out in the case of the petitioner for the relevant assessment year.

The court, while granting the stay on the reassessment proceedings, noted that it was highly unlikely that the petitioner would be engaged in input tax credit fraud as alleged by the department.

Case Title: Bharat Heavy Electricals Limited Versus PCIT

Citation: 2022 LiveLaw (Del) 378

Dated: 25.04.2022

Counsel For Petitioner: Advocate Piyush Kaushik

Counsel For Respondent: Advocate Sanjay Kumar

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