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RAJIV SHAKDHER, GIRISH KATHPALIA
Home Credit India B. V. – Appellant
Versus
Assistant Commissioner of Income Tax Circle 2 1 1, International Taxation New Delhi – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM No.28776/2023
1. Allowed, subject to just exceptions.
W.P.(C) 7397/2023 & CM No.28775/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Sanjay Kumar, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
3. Given the directions that we propose to issue, Mr Kumar says that he does not wish to file a counter-affidavit in the matter, and he will argue the matter based on the record presently available with the court.
3.1. Therefore, with the consent of learned counsel for the parties, the matter is taken up for hearing and final disposal at this stage itself.
4. This writ petition concerns Assessment Year (AY) 2019-20.
5. Mr Sachit Jolly, who appears on behalf of the petitioner, has drawn our attention to the notice dated 04.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961 [in short, "Act"].
5.1. It is Mr Jolly's contention that the notice had been issued without application of mind. In this context, Mr Jolly has broadly made the following submissions:
(i) First, the allegation concerns investment in shares and, as correctly put by him, at this stag
The main legal point established in the judgment is that notices issued under the Income Tax Act must be based on proper application of mind, and if found lacking, can be set aside by the court.
The court emphasized the importance of adhering to the original allegation in the notice and found the Assessing Officer's conclusion regarding fair market value to be erroneous, leading to the setti....
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.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
The failure to consider the petitioner's reply and grant a hearing led to the setting aside of the assessment order and the direction for a fair hearing and speaking order by the Assessing Officer.
The requirement of prior approval of the specified authority under Section 148A(d) satisfies the condition for issuance of a notice under Section 148 of the Income Tax Act, 1961.
The central legal point established in the judgment is the importance of correct assessment by the Assessing Officer and the disclosure of transactions in the Return of Income (ROI) for the assessmen....
The principle of consistency in reasons for reopening assessments is crucial in determining the sustainability of notices issued under the Income Tax Act.
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