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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Civitech Developers Private Limited – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to tax order under section 148a(d) (Para 1) |
| 2. alleged violation of natural justice (Para 2 , 4) |
| 3. notification from assessing officer regarding a remand (Para 3) |
| 4. remand for fresh adjudication (Para 5) |
| 5. disposition of the writ petition (Para 6) |
JUDGMENT
Manmohan, J. (Oral)
CM APPL. 39114/2022
Exemption allowed, subject to all just exceptions.
Accordingly, this application stands disposed of.
W.P.(C) 12851/2022 & CM APPL. 39113/2022 (for interim relief)
1. Present writ petition has been passed challenging the order passed under section 148A(d) of the Income Tax Act, 1961 [the Act] and the consequential Notice issued under section 148 of the Act both dated 27th July, 2022 for the Assessment Year [AY] 2016-17.
2. Learned Counsel for the Petitioner states that the impugned notice and order have been passed in violation of principles of natural justice in as much as the detailed reply dated 8th June, 2022 to the Show Cause Notice dated 27th May, 2022 issued under section I48A(b) of the Act submitted by the Petitioner, even though acknowledged by the Respondent, has not been considered while passing the impugned order dated 27th July, 2022 under se
The issuance of a reassessment notice must adhere to principles of natural justice, including consideration of all relevant submissions by the assessee.
Court emphasized that reassessment notices must consider all disclosures made by the taxpayer, reaffirming the principle of natural justice when reviewing prior returns.
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.
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....
Natural justice is violated when a party is not given a chance to explain their case before adverse decisions are made in tax reassessment processes.
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.
Section 148A advisedly uses the expression ‘enquiry’.
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.
The court established that failing to consider a taxpayer's submission violates procedural fairness in tax assessments, necessitating the annulment of prior notices.
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