The entire day channels have been occupied with Nirav Modi fraud case and almost forgot to highlight the massive development about Robert Vadra land deal scam. Robert Vadra, the son in law of Sonia Gandhi is facing massive corruption charges and land deal scams in Haryana and Rajasthan.

His company Sky Light hospitality was involved in allegedly taking Rs 5 crore loan from DLF, purportedly using the money to purchase a parcel of land, and later seemingly selling the same land to DLF for Rs 50 crore. The Income Tax department had issued notice questioning the dubious transaction and the mode of operation of sky light properties. However, Robert Vadra had failed to give any clarification in the case and filed a writ petition seeking re-assessment notice issued against it by the I-T Department.

But the High Court today dismissed Robert Vadra’s petition and gave a green signal for the Income Tax department to conduct an inquiry into the land acquisition and dubious transactions. This has come as a massive blow to Robert Vadra as the Income Tax is now free to conduct even raids if Robert Vadra does not provide clarification.

The High court today slammed the Sky Light Properties and declared that the Income Tax cannot be stopped from inquiring the property details and the writ petition, therefore, cannot be accepted.

The High Court Judgement is as follows

Delhi HC dismisses writ petition filed by Sky Light Hospitality LLP (converted into LLP from Pvt. Ltd. Co. and where Mr. Robert Vadra is one of the LLP partners ), challenging the re-assessment notice issued in the name of erstwhile Pvt. Ltd. Co.;

Petitioner contended that despite the Pvt. Ltd. Co. ceasing to exist in May 2016, Sec. 147/148 notice was addressed in its name in March 2017 and hence the notice issued to a dead juristic person ought to be treated as invalid and void;

Firstly, HC refers to the reasons recorded by AO based on the Tax Evasion Report forwarded by the Investigation wing (in respect of the purchase of land transaction and collaboration agreement entered into with DLF), holds that “we are satisfied that the “reasons to believe” show and establish a live link and connect with the inference drawn that income had escaped assessment..”;

Next, on the issue of validity of notice issued in the name of the company, HC notes that conversion of the private limited company into an LLP was noticed and mentioned in the tax evasion report, reasons to believe recorded by AO, approval obtained from Pr. CIT and order u/s. 127, however, only the mistake was made in addressing the notice;

Terming the serving of notice on a dissolved co. as an ‘error’ and a ‘technical lapse’, HC, however, accepts Revenue’s stand that the same is not a jurisdictional error, but an irregularity and procedural/technical lapse which can be cured u/s. 292B; Opines that “human errors and mistakes cannot and should not nullify proceedings which are otherwise valid and no prejudice had been caused.

This is the effect and mandate of Section 292B of the Act.”; Relies on co-ordinate bench ruling in Jagat Novel Exhibitors Pvt. Ltd., distinguishes assessee’s reliance on plethora of rulings including SC ruling in Mohinder Singh Gill & Anr, co-ordinate bench rulings in Spice Infotainment Ltd. and Dimension Apparels Private Limited, Allahabad HC ruling in Sri Nath Suresh Chand Ram Naresh; Lastly, HC clarifies that it has not expressed any opinion on the merits of the case.

Credit and Source: http://www.republicworld.com/india-news/general-news/robert-vadra-loses-in-court-as-delhi-hc-dismisses-petition-filed-by-sky-light-hospitality-vadra-to-be-questioned-by-i-t-dept

Aishwarya S