HC dismisses MTNL's plea against IT notice

HC dismisses MTNL's plea against IT notice
PRESS TRUST OF INDIA

AUG 26: The Delhi High Court has dismissed a petition filed by the Mahanagar Telephone Nigam Ltd (MTNL) seeking quashing of a notice issued to it by the Income Tax department for re-assessment of tax for the year 1994-1995.

A division bench comprising Chief Justice Arijit Passayat and Justice D K Jain yesterday rejected the plea of MTNL and said from any angle the notice issued to it by the department could not be said to be invalid.

The MTNL had moved the court challenging the validity of the notice issued to it by the Joint Commissioner of Income Tax on the grounds that no income chargeable to tax had escaped assessment and the notice issued to reassess the petitioner was a mere change of opinion.

The notice issued by the Joint Commissioner said the MTNL filed its return for the assessment year 1994-95 on a total income of Rs. 778,01,90,342 on November 30, 1994 and examination of return of income revealed that a sum of Rs 124,85,60,000 has been claimed as licence fees as against nil in the immediately preceeding year.

The Joint Commissioner had said "the claim made by the assessee is erroneous and should have been disallowed and I have reasons to believe that income chargeable to tax of Rs. 124,85,60,000 has escaped assessment for the assessment year 1994-95".