The Delhi High Court has stayed the reopening of income tax assessments, keeping in view the credentials of Bharat Heavy Electricals Limited (BHEL).
The Petitioner contended that it is a reputed PSU that has been awarded ‘Maharatna’ status in the past. He further states that the petitioner is under the direct supervision of the Union Government and has strict internal controls. He states that the Petitioner had filed returned income of Rs.1,707/- crores for the Assessment Year 2018- 19.). It was further contended that the Petitioner is subject to dual audit under the Companies Act as well as by CAG and has been given a clean chit for the Assessment Year 2018-19. He also emphasizes that a complete scrutiny assessment had been done in the case of the petitioner for the relevant Assessment Year.
The division bench of Justice Manmohan and Justice Dinesh Kumar Sharma observed that “it is highly unlikely that the petitioner would be engaged in input tax credit fraud as alleged by the Respondents. Accordingly, till further orders, no action shall be taken in pursuance to the impugned order and notice dated 31stMarch, 2022.”
Mr. Piyush Kaushik, Advocate appeared for the assessee.
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