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RAJIV SHAKDHER, GIRISH KATHPALIA
Sistema Asia Fund Pte Ltd. – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM Appl.30218/2023
1. Allowed, subject to just exceptions.
W.P.(C) 7838/2023 & CM Appl.30217/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Sunil Agarwal, learned senior standing counsel, accepts notice on behalf of the respondent/revenue.
3. In view of the directions that we intend to pass, Mr Agarwal says that no counter-affidavit is required to be filed, and he would argue based on the record presently available with the court.
4. This writ petition concerns Assessment Year (AY) 2019-20.
5. The petitioner has assailed, via the said writ petition, the order dated 28.04.2023 passed under Section 148A(d) of the Income Tax Act, 1961 [in short, "Act"].
5.1. In addition thereto, a challenge is also laid to the consequential notice of even date, i.e., 28.04.2023 issued under Section 148 of the Act.
5.2. Besides this, the petitioner has also challenged the notice dated 23.03.2023 issued under Section 148A(b) of the Act.
6. Counsel for the petitioner says that the impugned order and consequential notice referred to hereinabove are flawed, as the Assessing Officer (AO) has moved away from the alleg
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 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.
Notices under the Income Tax Act must clearly specify allegations of income escapement; vague notices are invalid.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
Proceedings initiated based on risk management strategy, valuation of shares to be determined by the assessing officer.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
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