MUMBAI: The Bombay high court has dismissed a petition filed by Maharashtra minister for food and civil supply Chhagan Bhujbal against assessment proceedings by Income Tax (I-T) department.
The I-T office had in March 2019 issued him a notice saying income of over Rs 3 crore for 2012-13 had escaped its notice for assessment. Bhujbal challenged the notice.
The HC agreed with the submissions made by counsel for I-T Sham Walve, who said that once Bhujbal had participated in the assessment proceedings, he could not challenge it before court.
In his order, Justice K R Shriram said, “The test to be applied is whether there was reason to believe income had escaped assessment and whether the assessing officer has tangible material for the formation of that belief. Once tangible basis has been disclosed, it would not be appropriate for this court to prevent an enquiry. In this case, the reasons indeed disclose that tangible material.”
The HC agreed with Bhujbal’s counsel K Gopal that the I-T “commissioner is duty bound to apply his mind... and such power cannot be exercised casually, in a routine and perfunctory manner.” But the HC added, in Bhujbal’s case there is “nothing to indicate that there was non-application of mind.” The I-T department had in September 2019 said that “credible information received” from deputy director of I-T found that “suspect person has defrauded the Maharashtra government by preparing fabricated documents and used them as genuine documents …and gained from developer M/s. K.S. Chamankar Enterprises”.
