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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Best Buildwell Private Limited – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to order under income tax act (Para 1) |
| 2. details of assessment and purchases (Para 2 , 3 , 4) |
| 3. respondent's claims based on gst data (Para 5 , 6) |
| 4. court's concerns over notice specificity (Para 7 , 8 , 9) |
| 5. quashing of orders and provisions for further inquiry (Para 10) |
JUDGMENT
Manmohan, J. (Oral)
C.M.No.33396/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.11338/2022 & C.M.No.33395/2022
1. Present writ petition has been filed challenging the order dated 30th March, 2022 passed under Section 148A(d) of the Income Tax Act, 1961 [`the Act'] and notice dated 31st March, 2022 issued under Section 148 of the Act as well as show cause notice dated 16th March, 2022 issued under Section 148A(b) of the Act for the Assessment Year 2018-19.
2. Learned counsel for the Petitioner states that the Petitioner had filed its return of income for the Assessment Year 2018-19 declaring an income of Rs.6,32,45,180/- and loss of Rs.74,36,185/-. He states that the case of the Petitioner was picked up for scrutiny and after examination of all the submissions of the Petitioner, an assessment order dated 27
Orders based on vague allegations without specific details violate the right to a fair hearing under tax law.
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.
Assessing Officers must provide specific details in notices for effective response by Assessee, adhering to principles of natural justice.
The Court affirmed that vague show cause notices issued under Section 148A(b) lack compliance with natural justice, necessitating clear material for Assessee responses.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
The main legal point established in the judgment is the requirement for the Assessing Officer to consider the material available on record, including the reply filed by the assessee, before deciding ....
Show cause notices challenging tax claims must adhere to natural justice principles, and IGST Refund claims do not qualify as chargeable income under income tax laws.
The court held that the Assessing Officer's failure to consider the petitioner's detailed replies before passing the reassessment order violated procedural justice under the Income Tax Act.
Violation of principles of natural justice and non-application of mind led to the setting aside of the impugned order and remand of the matter for a fresh decision.
The central legal point established in the judgment is the interpretation of the amended re-assessment scheme introduced by the Finance Act, 2021, and the importance of upholding principles of natura....
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