Bombay HC Sets Aside I-T Notice Against Tata Steel on Technical Grounds

Tata Steel Ltd. said the Bombay High Court has quashed a show cause notice from the Income Tax Department and subsequent proceedings related to a reassessment of its taxable income for 2019-20.

The court, in its August 16 order, held that the notice was invalid as it was issued by a jurisdictional assessing officer instead of the mandated faceless assessing officer. The decision was based on established legal precedents.

The case stemmed from a notice issued in connection with the waiver of a ₹251.9 billion loan in favour of Tata Steel BSL Ltd., which has since merged with Tata Steel. The assessing officer had passed an order adding the waived amount to the company’s taxable income.

Tata Steel challenged the reassessment through a writ petition, questioning the assessing officer’s authority.
The company said if legal precedents change and tax authorities revive the case, the matter will then be adjudicated on merits considering the other issues it has raised.