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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Sanjay Gupta – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. challenge to notices issued under it act (Para 1) |
| 2. jurisdiction issues due to dissolution of partnership (Para 2 , 3 , 4) |
| 3. court's directive for supplementary replies (Para 5 , 6) |
| 4. writ petition disposed with rights left open (Para 7) |
JUDGMENT
Manmohan, J. (Oral)
C.M.No.41873/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.13712/2022 & C.M.No.41872/2022
1. Present writ petition has been filed challenging the notice dated 17th March, 2022 for the Assessment Year 2018-19, notice dated 22nd March, 2022 for the Assessment Year 2015-16, both issued under Section 148A(b) of the Income Tax Act, 1961 (`the Act') and notice dated 28th March, 2021 issued under Section 148 of the Act for Assessment Year 2017-18 as well as the orders dated 9th April, 2022 passed under Section 148A(d) of the Act for the Assessment Years 2018-19 and 2015-16.
2. Learned counsel for the Petitioner states that the impugned notices are without jurisdiction as the same have been issued in the name of a nonexistent partnership firm - Railton Electronics. He states that the Petitioner, during the reassessment proceedings, duly
Notices issued under tax laws to a nonexistent entity are invalid; transactions must be correctly accounted for by the current entity.
Notices issued in the name of a dissolved partnership firm are invalid, reaffirming the necessity for proper jurisdiction in tax assessments.
Reassessment notices issued in the name of a non-existent entity are void ab initio, and failure to adhere to natural justice principles mandates the setting aside of such orders.
The impugned order and notice under Section 148 and 148A(d) of the Income Tax Act, issued against a non-extant entity, cannot be complied with, and were therefore set aside.
The central legal point established in the judgment is the requirement to adhere to the principle of natural justice in assessment proceedings under the Income Tax Act, particularly when dealing with....
The court emphasized the importance of the Assessing Officer considering the explanation given by the petitioner and the need to establish the taxable income in the hands of the legal entities.
Notices issued under the Income Tax Act to a non-existent entity are void ab initio, and proper jurisdiction must be established based on the current legal status of the taxpayer.
Reassessment proceedings are invalid if initiated against a non-existent entity and without considering the taxpayer's response, breaching principles of natural justice.
A notice under Section 148 of the Income Tax Act is invalid if issued against a non-existent entity, confirming the need for valid recognition of a company's status post-amalgamation.
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