Back
RAJIV SHAKDHER, GIRISH KATHPALIA
Deepak Jain – Appellant
Versus
Income Tax Officer Ward 44(1), Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
1. On 02.05.2023, we had heard the matter briefly, when we had recorded the following broad contour, concerning the matter at hand:
"2. This writ petition concerns Assessment Year (AY) 2017-18. 3. Mr Nitin Gulati, who appears on behalf of the petitioner, says that the reassessment proceedings are flawed for the following reasons:
(i) First, the proceedings do not have the approval of the specified authority.
(ii) Second, even according to the respondents/revenue, the escaped income is Rs.30,70,526/-. This is below Rs.50,00,000/-, which is the threshold requirement provided under Section 149(1)(b) of the Income Tax Act, 1961 [in short, "Act"]."
2. Mr Aseem Chawla, learned senior standing counsel, who appears on behalf of the respondents/revenue, cannot but accept that the escaped income, as noted by us on 02.05.2023, is below Rs.50 lakhs.
3. It is also obvious that more than three years have elapsed, since the end of the Assessment Year (AY) in issue.
4. We had indicated on 02.05.2023 that if the department were to give instructions to resist the petition, a counter-affidavit should be filed. No cou
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 importance of timely assertion and the requirement for verification and personal hearing before passing an assessment order under the Income Tax Act.
The central legal point established in the judgment is that a reassessment proceeding must be based on sufficient material and income in each assessment year is to be assessed independently.
Reassessment proceedings must be initiated with the approval of the specified authority as per Section 151 of the Income Tax Act, 1961.
The amended Income Tax Act allows reassessment without prior 'reason to believe', broadening the scope for initiating proceedings based on third-party information.
If an assessing authority forms an opinion during the original assessment proceedings on the basis of material facts and subsequently finds it to be erroneous; it is not a valid reason under the law ....
The court upheld the authority of the Assessing Officer to reassess income under amended provisions of the Income Tax Act, reinforcing that objections can be addressed during reassessment proceedings....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
