41. BHIL Employees Welfare Fund No. 4 vs. ITO
[2023] 455 ITR 130 (Bom)
A.Y. 2017–18: Date of order: 7th January, 2023
Sections 69 and 220 of ITA 1961.
Recovery of tax — Stay of demand — Factors to be considered — Assessee having strong prima facie case — Assessment at a high-pitched rate — Demand causing undue financial hardship to the assessee — Stay ordered. The assessee was formerly formed for the benefit of the employees of the erstwhile Bajaj Auto Limited. The assessee was formerly known as “Bajaj Auto Employees Welfare Fund No. 4” and was allotted PAN in the status of a Firm. As per the scheme of demerger approved by the Court, the automobile business was transferred to Bajaj Auto Limited and finance was transferred to Bajaj Finserv Limited with effect from 31st March, 2007, and Bajaj Auto Limited’s name was changed to Bajaj Holdings and Investment Limited (“BHIL”) on 5th March, 2008. Pursuant to the scheme of demerger, the name of Bajaj Auto Welfare Employees Fund was changed to BHIL Employees Welfare Fund No. 4 as per trust deed dated 16th February, 2015, and on application, the assessee was allotted PAN with the status of Trust.
On 31st March, 2021, the AO issued notice under section 148 of the Income-tax Act, 1961 under the old name and PAN of the assessee on the ground that the assessee failed to file income tax return. Thereafter, notices were issued under section 142(1) under the
