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RAJIV SHAKDHER, GIRISH KATHPALIA
Praefinium India Opportunities F Ltd. – Appellant
Versus
Deputy Commissioner of Income Tax Circle International Taxation 2 (2) (2) New Delhi. – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM No.29583/2023
1. Allowed, subject to just exceptions.
W.P.(C) 7627/2023&CM No.29582/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Vipul Agrawal, learned senior standing counsel accepts notice on behalf of the respondent/revenue.
3. Given the direction that we propose to issue, Mr Agrawal says, he does not wish to file a counter-affidavit, andthat 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. The principal allegation against the petitioner is, that its investment in equity shares of a company going by the name Mentor Capital Ltd. amounting to Rs.43,52,34,000/- remains unexplained.
6. Concededly, the petitioner is a company incorporated in the Virgin Islands (British).
7. Admittedly, the petitioner is a "non-filer". The petitioner has asserted, that it is not claiming any tax treaty exemptions.
8.
The principle of natural justice and fair opportunity in assessment proceedings under the Income Tax Act.
The court emphasized the requirement to grant a minimum of seven days to respond to a notice under the Income Tax Act and the obligation to furnish material available with the Assessing Officer to th....
The principle of natural justice and fair procedure in reassessment proceedings.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
Reassessment proceedings must be initiated with the approval of the specified authority as per Section 151 of the Income Tax Act, 1961.
The Assessing Officer must independently consider the petitioner's response and furnish relevant material before passing an assessment order.
Violation of principles of natural justice and failure to adhere to the timeline given in the notice led to the setting aside of the impugned assessment orders.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
Reassessment proceedings cannot be solely based on mere suspicion and must be supported by concrete evidence or material.
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.
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