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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Aryan Management Services Private Limited – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge of order under income tax act. (Para 1) |
| 2. petitioner's arguments on application of mind. (Para 2 , 3) |
| 3. revenue's contention on money received. (Para 4) |
| 4. court observations on lack of evidence. (Para 5 , 6 , 7) |
| 5. denial of opportunity to respond. (Para 8) |
| 6. setting aside the impugned order. (Para 9) |
| 7. final disposal of writ petition. (Para 10) |
JUDGMENT
Manmohan, J. (Oral)
C.M.No.37355/2022
Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of.
W.P.(C) No.12422/2022 & C.M.No.37354/2022
1. Present writ petition has been filed challenging the order dated 26th July, 2022 passed by the Respondent No. 1 under Section 148A(d) of the Income Tax Act, 1961 (`the Act') and the notice dated 26th July, 2022 issued by the Respondent No. 1 to the Petitioner under Section 148 of the Act for the Assessment Year 2014-15 and the consequential proceedings initiated thereto.
2. Learned counsel for the Petitioner states that the impugned order has been passed without application of mind and without considering the response filed by the Petitioner. He states that the Petitioner is a small nontrading company earning only renta
The failure to share material information in tax proceedings leads to a violation of the right to a fair hearing, necessitating the quashing of related orders.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
The Court affirmed that vague show cause notices issued under Section 148A(b) lack compliance with natural justice, necessitating clear material for Assessee responses.
Assessing Officers must provide specific details in notices for effective response by Assessee, adhering to principles of natural justice.
Natural justice principles are flexible, requiring case-specific application, and a prima facie case of income escapement justifies reopening assessments.
Orders based on vague allegations without specific details violate the right to a fair hearing under tax law.
Reassessment orders under the Income Tax Act must provide specific details regarding allegations to ensure due process and procedural fairness.
Notices issued under Income Tax Act to a non-existent entity due to merger are void ab initio; reasoned orders are necessary for valid assessment proceedings.
The court established that failing to consider a taxpayer's submission violates procedural fairness in tax assessments, necessitating the annulment of prior notices.
The failure of the Assessing Officer to consider the petitioner's reply before issuing an order under Section 148A(d) constitutes a breach of natural justice, invalidating the order.
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