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RAJIV SHAKDHER, GIRISH KATHPALIA
Riya Gangwani – Appellant
Versus
Assistant Commissioner of Income Tax, Circle 49(1), Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral):
1. This writ petition concerns Assessment Year (AY) 2019-20.
2. Issue notice.
2.1. Mr Shailendera Singh, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
3. In view of the direction that we intend to pass, Mr Singh says that no counter-affidavit is required to be filed, and he will rely on the record presently available with the court.
4. Via the instant writ petition, the petitioner seeks to assail the following notices and orders:
(i) Notices dated 06.03.2023 and 20.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961 [in short, "Act"].
(ii) Order dated 24.03.2023 issued under Section 148A(d) of the Act.
(iii) Consequential notice of even date, i.e., 24.03.2023 issued under Section 148 of the Act.
5. It is evident that the petitioner was served with two (2) notices under Section 148A(b) of the Act.
6. The record shows that the petitioner had filed replies vis-a-vis both notices.
6.1. A reply vis-a-vis the first notice was filed on 16.03.2023.
6.2. Likewise, a reply vis-a-vis the second notice was filed on 22.03.2023.
7. The principal allegation
Procedural fairness and compliance with notice requirements are essential in the assessment process under the Income Tax Act.
The court emphasized the importance of addressing the petitioner's submissions and complying with the time limit for filing the reply, leading to the order for a de novo exercise by the AO.
The requirement for the Assessing Officer to furnish relevant material to establish the petitioner's receipt of money in cash, influencing the decision to set aside the impugned order and notice.
The principle of natural justice and due process requires the Assessing Officer to provide requisite material and accord personal hearing before carrying out proceedings de novo.
Compliance with procedural requirements and the right to a fair hearing are essential in proceedings under the Income Tax Act, 1961.
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 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....
Failure to consider the petitioner's reply can lead to the setting aside of an impugned order and grant liberty for a de novo exercise 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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