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RAJIV SHAKDHER, GIRISH KATHPALIA
Banyan Real Estate Fund Mauritius – Appellant
Versus
Assistant Commissioner of Income Tax Circle International Tax 1 1 2 – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral):
CM APPL. 40641/2023
1. Allowed, subject to just exceptions.
W.P.(C) 10485/2023 & CM APPL. 40640/2023[Application filed on behalf of the petitioner seeking interim relief].
2. This writ petition concerns Assessment Year (AY) 2016-17.
3. The record, as presently made available to us, shows that there has been no application of mind by the Assessing Officer (AO).
4. Evidently, the petitioner was issued a notice dated 24.03.2023 under Section 148A(b) of the Income Tax Act, 1961 [in short, "The Act"].
5. The allegation levelled against the petitioner concerned the following two aspects:
(i) First, it had remitted monies to non-resident/foreign company.
(ii) Second, it had paid Rs.1 lakh or more, for acquiring shares.
5.1. Insofar as remittances were concerned, in the notice under Section 148A(b) of the Act, there are two amounts mentioned i.e. Rs. 36,70,31,500/- & Rs. 8,98,87,560/-.
5.2. Insofar as the allegations concerning the monies paid by the petitioner for acquiring shares was concerned, it was pegged at Rs. 10,18,59,480/-.
6. As required in the aforesaid notice, the petitioner filed a response
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 Assessing Officer must independently consider the petitioner's response and furnish relevant material before passing an assessment order.
The removal of the foundation leading to the fall of the superstructure is a key legal principle in determining the validity of orders under the Income Tax Act.
Point of Law : Assessment - Unless any income chargeable to tax has escaped assessment for such assessment year by reason o f the failure on the part of the assesse to disclose fully and truly all ma....
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 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.
Procedural fairness and compliance with notice requirements are essential in the assessment process under the Income Tax Act.
The principle of natural justice and fair opportunity in assessment proceedings under the Income Tax Act.
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