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RAJIV SHAKDHER, GIRISH KATHPALIA
Tirupati Trading Corporation – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral) - We had heard learned counsel for the parties at some length on 16.12.2022, after which we had recorded the broad contours of the matter. For convenience, the relevant parts of the order dated 16.12.2022 are set forth hereafter:
"1. The matter is taken up today once again as the order dated 28.07.2022 passed by the respondent/revenue under Section 148A(d) of the Income Tax Act, 1961 [in short, "the Act"] was discrepant.
1.1 The discrepancy in the aforementioned order concerns the bank account number of one Mr Ramesh Kumar Bagri maintained with IDBI Bank.
2. Mr C.S. Aggarwal, learned senior counsel, who appears on behalf of the petitioner, says that he has got yet another certificate titled "To Whom It May Concern" dated 15.12.2022 with respect to the other account number i.e., 264102000006354 indicated in the aforementioned order.
2.1 A copy of this communication has been handed over to Mr Abhishek Maratha.
2.2 The Registry will scan and upload the same so that it remains part of the case file.
3. In any event, for the moment, we are not taking into account this document till it is verified by the respondent/revenue. However, that, by itself, will not c
The central legal point established in the judgment is the requirement for accurate and substantiated information to trigger reassessment proceedings under the Income Tax Act, and the court's authori....
The central legal point established in the judgment is the requirement for actionable material and the significance of discrepancies in assessment proceedings under the Income Tax Act, 1961.
The central legal point established in the judgment is that reassessment proceedings cannot be triggered based on unsubstantiated allegations, and the court has the authority to set aside the impugne....
The court emphasized the importance of ensuring that allegations made by the Assessing Officer are put to the petitioner and that the next steps are taken in accordance with the law.
Reopening of assessment based on incorrect information without due verification by the Assessing Officer is declared illegal.
The court emphasized the importance of the AO seeking explanations before considering investments as unexplained, especially when the focus of the allegations had shifted.
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