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RAJIV SHAKDHER, VIKAS MAHAJAN
Kuber Planters Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM No.9151/2023
1. Allowed, subject to just exceptions.
W.P.(C) 2382/2023 & CM No.9150/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Gaurav Gupta accepts notice on behalf of the respondents/revenue.
3. Mr Gupta says that in view of the directions that we intend to pass, no counter-affidavit is required to be filed at this stage. Therefore, with the consent of learned counsel for the parties, the writ petition is taken up for hearing and final disposal at this stage itself.
4. This writ petition is directed against the order dated 27.03.2022 passed under Section 148A(d) and the consequential notice of even date, i.e., 27.03.2022 issued under Section 148 of the Income Tax Act, 1961 [in short, "Act"].
4.1. To be noted, the impugned order and notice concern Assessment Year (AY) 2018-19.
5. Ms Ekakshra Mahajan Mandhar, who appears on behalf of the petitioner, says that the principal grievance of the petitioner is that the reassessment proceedings have been commenced without the approval of the specified authority, as provided in Section 151 of the
Reassessment proceedings must be initiated with the approval of the specified authority as per Section 151 of the Income Tax Act, 1961.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
The importance of factual accuracy in the Assessing Officer's assumptions and the requirement to grant a fair opportunity for a personal hearing influenced the court's decision.
The Assessing Officer must consider the petitioner's response and furnish the information/material before passing an order under Section 148 of the Income Tax Act.
Reassessment proceedings cannot be solely based on mere suspicion and must be supported by concrete evidence or material.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
Failure to inform the petitioner about the decision on their request for accommodation constituted a breach of principles of natural justice, warranting the setting aside of the assessment order and ....
Grant of personal hearing is a mandatory requirement under Section 144B(6)(vii) of the Income Tax Act, and failure to provide such a hearing can result in the setting aside of the assessment order.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
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