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MANMOHAN, DINESH KUMAR SHARMA
Divya Capital One Private Limited – Appellant
Versus
Assistant Commissioner Of Income Tax Circle – Respondent
JUDGMENT
Manmohan, J. (Oral). - C.M.No.22640/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.7406/2022 & C.M.No.22639/2022
1. Present Writ Petition has been filed challenging the Notice dated 17th March, 2022 issued under Section 148A(b) of the Income Tax Act, 1961 ('the Act') as well as the Order dated 04th April, 2022 passed by the Assessing Officer under Section 148A(d) and the consequential impugned notice dated 04th April, 2022 issued under Section 148 of the Act.
2. Learned counsel for the Petitioner contends that the impugned Order dated 04th April, 2022 under Section 148A(d) has been passed without considering the replies dated 24th March and 31st March, 2022 filed by the Petitioner to the show cause notice. He states that the petitioner filed a preliminary response to the above said show cause notice whereby the petitioner objected to the legal validity of the notice under Section 148A(b) on the ground that there was no information that suggested that income had escaped assessment. The petitioner further requested respondent No.1 to provide the information/documents, relied upon for assuming jurisdiction, which
The central legal point established in the judgment is the interpretation of the amended re-assessment scheme introduced by the Finance Act, 2021, and the importance of upholding principles of natura....
The court held that the Assessing Officer's failure to consider the petitioner's detailed replies before passing the reassessment order violated procedural justice under the Income Tax Act.
The main legal point established in the judgment is the significance of adhering to the procedure prescribed under Section 148A of the Income Tax Act, 1961 before initiating reassessment proceedings.....
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
The court upheld the authority of the Assessing Officer to reassess income under amended provisions of the Income Tax Act, reinforcing that objections can be addressed during reassessment proceedings....
Assessment under Income Tax requires concrete information indicating escapement of income, which was absent in this case, rendering notices invalid.
The court established that the discretionary nature of inquiries under Section 148A does not mandate a personal hearing or exhaustive justification for the Assessing Officer's decisions.
Reassessment under Income Tax Act is impermissible on issues already addressed in a completed assessment, as it constitutes a change of opinion without new material evidence.
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