- (1.) Petitioner-L.G.Electronics India (P) Ltd., a Company, incorporated under the Companies Act has filed this writ petition for quashing of the notice dated 28.03.2013 issued by the Assistant Commissioner of Income Tax, NOIDA for the Assessment Year 2006-07 under Section 148 of the Income Tax Act, 1961 (herein after referred to as the 'Act, 1961') wherein it has been stated that the officer has reasons to believe that the income chargeable to tax at the hands of the assessee for the year 2006-07 has escaped assessment within the meaning of Section 147 of the Act, 1961 in respect of which the assessee was assessable. The assessee was called upon to submit the return of the income within 30 days for which he is assessable in the said year. The notice has been enclosed as Annexure-1 to the present petition.
(2.) The reasons for initiating proceedings under Section 147 of the Act, 1961 have been communicated to the petitioner under letter dated 28.03.2013 and it reads as follows : "It is seen that M/s. L.G. Electronics India Ltd. (Henceforth LGEIL) has made the following remittances during the F.Y. 2005-06 relevant to A.Y. 2006-07 to its parent company (M/s. LG Electronics Korea) and other Associated Enterprises, on which no TDS has been deducted. The same expenses are dis-allowable u/s 40 (a) (i) of the Income Tax Act. The details of the remittances made by the Company are as follows : JUDGEMENT_460_LAWS(ALL)4_2015.jpg In view of the above facts I have reason to believe that income of the assessee has escaped assessment to the extent of Rs. 5,26,63,95,571/- which is chargeable to tax for the assessment year 2006-07 within the meaning of section 147 of the Income Tax Act, 1961. In order to assess the income escaping assessment, action u/s 147 of the I.T. Act is hereby initiated. Necessary approval of the Commissioner of Income Tax, Noida has been obtained u/s 151(1) of the I.T. Act through his letter dated 28.03.2013."
(3.) The notice has been challenged on the ground that the assumption of jurisdiction by the respondent authorities was bad as the basic requirements of Section 147 of the Act, 1961 were not satisfied. It has been stated that initiation of re-assessment proceedings beyond a period of four years as provided for under proviso to Section 147 of the Act, 1961 without stating that any income has escaped assessment on account of any failure on the part of the assessee to disclose complete and full facts/concealment of facts is bad.;