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RAJIV SHAKDHER, TARA VITASTA GANJU
Ornate Agencies Private Limited – Appellant
Versus
Assistant Commissioner of Income Tax Circle 19(1) New Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM Appl.14241/2023
1. Allowed, subject to the just exceptions.
W.P.(C) 3671/2023 & CM Appl.14240/2023[Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition concerns Assessment Year (AY) 2017-18.
3. Issue notice.
3.1. Mr Aseem Chawla, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
4. In view of the order that we intend to pass, Mr Chawla says that no counter-affidavit is required to be filed. Therefore, with the consent of the counsels for the parties, the writ petition is taken up for final hearing and disposal, at this stage itself.
5. The principal allegation against the petitioner is that a huge credit is reflected in its bank account. There is a reference to the fact that funds have been credited to its bank account amounting to Rs.48,68,62,905/-.
6. Mr Ruchesh Sinha, who appears on behalf of the petitioner, submits that the petitioner, in his reply dated 02.06.2022, has given a breakup of the aforementioned amount.
6.1. For this purpose, our attention has been made to paragraph 4 of the said reply.
| Particulars | Amount | |
The court emphasized the importance of ensuring that allegations made by the Assessing Officer are put to the petitioner and that the next steps are taken in accordance with the law.
Reassessment proceedings cannot be solely based on mere suspicion and must be supported by concrete evidence or material.
The central legal point established in the judgment is the requirement for actionable material and the significance of discrepancies in assessment proceedings under the Income Tax Act, 1961.
The central legal point established in the judgment is that reassessment proceedings must adhere to the specified authority's approval and the threshold requirements for escaped income under the Inco....
The central legal point established in the judgment is that the AO must have underlying material available to form a reasonable belief that income chargeable to tax has escaped assessment, and must f....
The court emphasized the importance of providing evidence, such as bank statements, to establish non-involvement in alleged transactions for reassessment proceedings under the Income Tax Act.
The court held that failure to provide complete information to the petitioner in reassessment proceedings violated due process under the Income Tax Act.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
Reassessment proceedings must be initiated with the approval of the specified authority as per Section 151 of the Income Tax Act, 1961.
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