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RAJIV SHAKDHER, GIRISH KATHPALIA
Oum Lamitech Private Limited – Appellant
Versus
Income Tax Officer Ward 19(1), Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM APPL. 25993/2023
1. Allowed, subject to just exceptions
W.P.(C) 6619/2023 and CM APPL.25992/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Ruchir Bhatia, senior standing counsel, accepts notice on behalf of the respondents/revenue.
3. In view of the directions that we propose to pass, Mr Bhatia says that he does not wish to file a counter-affidavit in the matter, and he would argue based on the record presently made available to the court.
4. Therefore, with the consent of counsel for the parties, the writ petition is taken up for hearing and final disposal, at this stage itself.
5. The principal allegation levelled against the petitioner is that he has entered into transactions with one, Mr Gurdeep Kartar Singh, who apparently is the proprietor of Trinity Overseas (India) in the Assessment Year (AY) 2019-20.
6. In this backdrop, it is alleged that income amounting to Rs. 21,56,000/- which was otherwise chargeable to tax in the petitioner's hands, has escaped assessment.
7. Mr Ruchesh Sinha, who appears on behalf of the petitioner, has su
The Assessing Officer must consider and correlate the documents provided by the petitioner in an assessment of escaped income under the Income Tax Act, 1961.
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.
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 that reassessment proceedings cannot be triggered based on unsubstantiated allegations, and the court has the authority to set aside the impugne....
Reassessment proceedings cannot be solely based on mere suspicion and must be supported by concrete evidence or material.
The court emphasized the importance of reasonableness and rationality in the assessment process and granted the AO the opportunity to re-examine the issue with a fresh look and grant a personal heari....
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 proper consideration of the petitioner's objections and material placed before forming an opinion on alleged income chargeable to tax.
Failure to grant a personal hearing by the Assessing Officer violates principles of natural justice, necessitating the annulment of the assessment order.
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