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RAJIV SHAKDHER, GIRISH KATHPALIA
Majestic Handicraft Private Limited – Appellant
Versus
Dy. Commissioner of Income Tax – Respondent
JUDGMENT
Rajiv Shakdher, J.: (Oral)
1. Issue notice.
1.1. Mr Abhishek Maratha, learned senior standing counsel, accepts notice on behalf of the respondent/revenue.
1.2. In view of the directions we propose to issue, Mr Maratha says that no counter-affidavit is required to filed in the matter and he will rely on the record presently available to the court.
1.3. Therefore, with the consent of counsel for the parties, this writ petition is taken up for hearing and final disposal, at this stage itself
2. This writ petition concerns Assessment Year (AY) 2013-14.
3. The record shows that the initial notice under Section 148 of the Income Tax Act, 1961 [in short, "Act"], which was issued to the petitioner, is dated 22.04.2021.
4. Mr Prakash Kumar Sinha, learned counsel, who appears for the petitioner, says that the reassessment proceeding triggered against the petitioner is flawed, inter alia, for the following reasons:
(i) First, the proceeding is time-barred.
(ii) Second, the charged levelled against the petitioner, that it is a beneficiary of bogus accommodation entries, is clearly unsustainable. It is pointed out, in this regard, the respondent/revenue referred to an entity going by
The importance of the petitioner's response to the notice issued under Section 148A(b) of the Income Tax Act and the granting of a personal hearing.
The central legal point established in the judgment is that reassessment proceedings cannot be triggered based on unsubstantiated allegations, and the court has the authority to set aside the impugne....
Second notice under Section 148A(b) is invalid when an initial notice under Section 148 has already been served; Supreme Court directions pertain to a different timeframe and do not apply.
Notices issued under the Income Tax Act must provide clear and specific information to the assessee, and vagueness or lack of clarity may lead to their quashing.
The principle of consistency in reasons for reopening assessments is crucial in determining the sustainability of notices issued under the Income Tax Act.
The main legal point established in the judgment is the requirement for the assessing officer to consider the record of earlier assessment years and apply the principle of consistency when the reason....
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 principle of consistency in reasons for reopening assessments across different assessment years is crucial, and the Assessing Officer must apply this principle before passing the assessment order....
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....
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