{"id":65162,"date":"2026-10-26T12:50:45","date_gmt":"2026-10-26T07:20:45","guid":{"rendered":"https:\/\/itatonline.org\/digest\/grasim-industries-limited-v-dy-cit-bom-hc-www-itatonline-org-2\/"},"modified":"2026-10-26T12:50:45","modified_gmt":"2026-10-26T07:20:45","slug":"grasim-industries-limited-v-dy-cit-bom-hc-www-itatonline-org-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/grasim-industries-limited-v-dy-cit-bom-hc-www-itatonline-org-2\/","title":{"rendered":"Grasim Industries Limited v. Dy.CIT (Bom)( HC ) [www.itatonline.org]."},"content":{"rendered":"<p style=\"font-weight: 400\">The assessee, <strong>Grasim Industries Limited<\/strong>, challenged the reassessment proceedings for A.Y. 2020-21 initiated on the basis of a notice dated 24-03-2026 issued under section 148A(1). The notice referred to transactions involving rights equity shares of Vodafone Idea Limited and alleged escapement of income of Rs. 329,03,62,124, but did not disclose the nature of the transaction, the basis of computation or the proposed application of section 56(2)(x) to the difference between the subscription price and the fair market value of the shares. The requisite particulars were furnished to the assessee only on 27-05-2026, after the expiry of the limitation period under section 149(2)(b), which ended on 31-03-2026. The Bombay High Court held that section 148A(1) mandates that the information suggesting escapement of income must accompany the show-cause notice and must disclose sufficient particulars to enable the assessee to respond effectively. Merely mentioning an amount allegedly escaping assessment does not satisfy this requirement. The subsequent supply of foundational information after the expiry of limitation cannot retrospectively validate a defective notice or extend the statutory period. The Court further held that the consequential notice under section 148 could not survive independently when the proceedings under section 148A were invalid. On the applicability of section 56(2)(x), the Court also held that the Revenue had erroneously invoked the provision in respect of the rights equity shares in the facts of the case. Accordingly, the notice dated 24-03-2026 under section 148A(1), the order dated 30-06-2026 under section 148A(3), and the consequential notice under section 148 were set aside. <strong>(AY. 2020-21) .(WP . No. 4298 of 2026, dt. 22-10-2026)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 148A: Reassessment \u2013 Notice under section 148A(1) issued within the limitation, but material information was not furnished along with the notice \u2013 Subsequent supply of information after expiry of limitation \u2013 Invalid notice \u2013 Right issue of shares &#8211; Difference between the subscription price and the fair market value of the shares.   Reassessment notice and consequential orders are quashed. [S. 56(2)(x), 147, 148, 148A(b), 148A(d), 149, Art. 226 ]  <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65162","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gX0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65162"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65162\/revisions"}],"predecessor-version":[{"id":65163,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65162\/revisions\/65163"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}