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MANMOHAN, MANMEET PRITAM SINGH ARORA
Zelos Developers Private Limited – Appellant
Versus
Assistant Commissioner Of Income Tax Circle 25(1) Delhi – Respondent
JUDGMENT
Manmohan, J. (Oral) - Present writ petition has been filed challenging the order passed under Section 148A(d) of the Income Tax Act, 1961 ('the Act') as well as the consequential notice issued under Section 148 of the Act, both dated 30th July, 2022, for the Assessment Year 2016-17.
2. Learned counsel for the Petitioner states that reassessment was done on the allegation that sale of immovable property worth Rs.13,65,00,000/- had escaped assessment. He states that the basis of the allegations are that the purchaser's PAN and Sale deeds were not on record as well as the stamp duty valuation of the transaction was not on record.
3. Learned counsel for the Petitioner states that the allegations against the Petitioner are factually incorrect. He states that the Petitioner / seller as well as the Purchaser i.e. Sh. Narinder Singh Dhingra have valid PANs and the same were also on record, interalia, in the form of the Annual Tax Statement under Section 203AA in Form 26AS. He states that income tax return for the Assessment Year 2016-17 has been filed on 17th October, 2016 where "Revenue from Operations" have been declared under three heads -
(i) Sale of Property Rights;
(ii) Project R
The court emphasized the importance of providing all necessary annexures and directed the Petitioner to re-supply its reply with annexures to the Assessing Officer within a week, in accordance with t....
The assessment proceedings were challenged successfully due to the reliance on incorrect factual basis, highlighting the necessity of maintaining proper records in tax assessments.
Natural justice is violated when a party is not given a chance to explain their case before adverse decisions are made in tax reassessment processes.
Court emphasized that reassessment notices must consider all disclosures made by the taxpayer, reaffirming the principle of natural justice when reviewing prior returns.
A non-speaking order in reassessment proceedings violates due process; the authority must supply necessary documents to ensure fairness.
Notices under Income Tax Act must contain clear allegations to allow adequate defense, failing which they may be set aside.
The issuance of a reassessment notice must adhere to principles of natural justice, including consideration of all relevant submissions by the assessee.
A notice under Section 148 of the Income Tax Act issued beyond four years without proper examination of material facts is invalid and lacks jurisdiction.
A petitioner can challenge proceedings based on incorrect factual assumptions about income tax return filings, and the Assessing Officer must respond appropriately to rebuttals presented.
The central legal point established in the judgment is the duty of the Assessing Officer to consider all relevant evidence before making an assessment under the Income Tax Act.
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