Supreme Court Dismisses Revenue Plea Against Gujarat HC Order Quashing Adani Wilmar Income Tax Reassessment

The Supreme Court on Monday refused to interfere with a Gujarat High Court judgment that had quashed the reopening of Adani Wilmar Limited's income tax assessment for the 2013–14 assessment year, dismissing a special leave petition filed by the revenue.

A Bench of Justice B. V. Nagarathna and Justice Ujjal Bhuyan said it was not inclined to step in after examining the record.

“Having regard to the facts of this case, we are not inclined to interfere in the matter. The SLP is dismissed. The question of law, if any, shall be kept open,” the bench said.

The matter concerned a Gujarat High Court ruling that had set aside a reassessment notice issued to Adani Wilmar after its assessment had already been completed under the minimum alternate tax regime. The High Court held that, on the facts of the case, there was no income that could be said to have escaped assessment, as even the proposed additions would not alter the tax liability already discharged under MAT

The High Court also found that the Assessing Officer could not assume jurisdiction to reopen the assessment when the statutory precondition of having “reason to believe” that income had escaped assessment was not met. It accordingly quashed the reassessment notice and all proceedings flowing from it.

Before the Supreme Court, the revenue specifically urged the court to keep open the legal question on whether additional tax can be imposed on unexplained credits under Section 68, even by reopening an assessment beyond the normal time limit under Section 150.

Accepting that limited request, the Supreme Court clarified that its refusal to interfere was confined to the facts of the case before it. The Bench left the legal question open to be examined in an appropriate future case.