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RAJIV SHAKDHER, GIRISH KATHPALIA
Upinder Kumar Wanchoo – Appellant
Versus
Income Tax Officer Ward 43 6new Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM APPL. 23003/2023
1. Allowed, subject to just exceptions.
W.P.(C) 5856/2023 and CM APPL. 23002/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition concerns Assessment Year (AY) 2016-17.
3. Via this writ petition, the petitioner has assailed notice dated 17.02.2023 issued under Section 148A(b) of the Income Tax Act, 1961 [in short, "the Act"].
3.1. Besides this, challenge is also laid to the order dated 30.03.2023 passed under Section 148A(d) of the Act. In addition, thereto, the petitioner has challenged the consequential notice dated 30.03.2023 issued under Section 148 of the Act.
4. The principal grievance of the petitioner is that the Assessing Officer (AO) has failed to appreciate the reply submitted by the petitioner, in response to the notice issued under Section 148A(b) of the Act, with regard to the facts adverted to therein.
4.1. In this regard, our attention is drawn to Annexure-13, which is appended on page 72 of the case file.
5. Briefly, it is the petitioner's case that he, along with two other persons, was a partner in a firm going by
The court emphasized the importance of the Assessing Officer considering the explanation given by the petitioner and the need to establish the taxable income in the hands of the legal entities.
The impugned order and notice under Section 148 and 148A(d) of the Income Tax Act, issued against a non-extant entity, cannot be complied with, and were therefore set aside.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
Notices issued in the name of a dissolved partnership firm are invalid, reaffirming the necessity for proper jurisdiction in tax assessments.
Notices issued under tax laws to a nonexistent entity are invalid; transactions must be correctly accounted for by the current entity.
Reassessment notices issued in the name of a non-existent entity are void ab initio, and failure to adhere to natural justice principles mandates the setting aside of such orders.
The legal principle established is that in cases of disputed income and corporate mergers, the Assessing Officer must verify the exact position and issue notice to relevant parties for reexamination.
Compliance with procedural requirements and the right to a fair hearing are essential in proceedings under the Income Tax Act, 1961.
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.
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