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DELHI HIGH COURT
MANMOHAN, MANOJ KUMAR OHRI
Pradeep Kumar Varshney – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to notice issued under section 148a (Para 1) |
| 2. arguments on applicability of section 153c (Para 2 , 4) |
| 3. court's observations on procedural validity under section 148a (Para 3 , 5) |
| 4. impugned order is untenable; remand for fresh order (Para 6) |
| 5. disposal of writ petition and pending applications (Para 7) |
JUDGMENT
Manmohan, J. (Oral)
1. Present writ petition has been filed challenging the order dated 9th April, 2022 passed by the Respondent under Section 148A(d) of the Income Tax Act, 1961 (for short `Act') for the Assessment Year 2018-19 and all consequential proceedings in pursuance thereto including issuance of the notice dated 9th April, 2022 under Section 148 of the Act.
2. Learned counsel for the Petitioner states that in the present case notice under Section 148A is not warranted as it is a case of Section 153C of the Act to which proviso (c) of Section 148A applies.
3. Mr. Sunil Agarwal, learned counsel for the Respondent has brought on record the instructions received by him by way of email dated 13th May, 2022. The said email is reproduced as under:
"To,
Sh. Sunil Aggarwal Senior Standing Counsel, High Court 4th Floor, 15 Link Road, Jang
The court determined that the reopening of assessment under Section 148A was unwarranted as the case fell under Section 153C due to insufficient adherence to procedural requirements.
Point of law: Petitioner is admittedly covered by proviso (c) to Section 148A, this Court is of the view that the impugned order and notice are untenable in law.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
The court established that failing to consider a taxpayer's submission violates procedural fairness in tax assessments, necessitating the annulment of prior notices.
Administrative orders can be set aside by courts if found to be flawed in execution, ensuring rectification of inaccuracies in legal processes.
A show cause notice under Section 148A(b) of the Income Tax Act must contain specific allegations of income escapement; its absence renders the assessment invalid.
Post Finance Act 2021, s.148 reassessment valid even for search-derived info if search after 01.04.2021; presume recent searches post-date; quash assessment for natural justice violation if reasonabl....
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