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RAJIV SHAKDHER, GIRISH KATHPALIA
Inderpal Singh Sayan – Appellant
Versus
Assessment Unit Income Tax Department – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
1. Issue notice.
1.1. Mr Gaurav Gupta, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
2. In view of the directions that we propose to pass, Mr Gupta says that he does not wish to file a counter-affidavit in the matter and he will argue the matter based on the record, as is presently available with the court. Therefore, with the consent of the learned counsels for the parties, the writ petition is taken up for hearing and final disposal, at this stage itself.
3. This writ petition concerns Assessment Year (AY) 2018-19.
4. This writ petition is directed against the assessment order dated 03.03.2023 passed under Section 147, read with section 144B of the Income Tax Act, 1961 [in short, "Act"].
4.1. Besides this, challenge is also laid to the notice dated 17.03.2022 issued under Section 148A(b) and the order dated 31.03.2022 passed under Section 148A(d) of the Act.
4.2. In addition thereto, challenge is also laid to the consequential notice dated 31.03.2022 issued under Section 148 of the Act.
5. The principal allegation against the petitioner is that he has f
Violation of principles of natural justice in not granting the petitioner enough opportunity to furnish an explanation in defense of the charge levelled against him.
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.
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 importance of timely assertion and the requirement for verification and personal hearing before passing an assessment order under the Income Tax Act.
The court emphasized the importance of the Assessing Officer's application of mind and adherence to the record in issuing notices and orders under the Income Tax Act, 1961.
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.
The court emphasized the importance of correct premise, sharing of relevant information, and clear understanding of the provisions of the Income Tax Act, 1961 in reassessment proceedings.
Reassessment proceedings cannot be solely based on mere suspicion and must be supported by concrete evidence or material.
Compliance with natural justice principles under Section 144B is mandatory, necessitating personal hearing opportunities when variances in assessment orders are proposed.
The court emphasized the importance of the Assessing Officer issuing a show cause notice to the petitioner, granting sufficient time to respond and furnish relevant documents before passing an assess....
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