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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Nagesh Trading Co. – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to notice under section 148a (Para 1 , 2) |
| 2. arguments regarding validity of proceedings (Para 3 , 4) |
| 3. court's view on issuance of notices (Para 5 , 6) |
| 4. quashing of show cause notice (Para 7) |
| 5. disposition of writ petition with clarifications (Para 8 , 9 , 10) |
JUDGMENT
Manmohan, J.
C.M.No.42110/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.13781/2022 & C.M.No.42109/2022
1. Present writ petition has been filed challenging the show cause notice dated 2nd June, 2022 issued under Section 148A(b) of the Income Tax Act, 1961 [`the Act'] as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, both dated 28th July, 2022 for the Assessment Year 2017-18.
2. Learned counsel for the Petitioner states that pursuant to the directions of the Supreme Court in Union of India vs. Ashish Agarwal, 2022 SCC OnLine SC 543, the Petitioner was issued a letter dated 2nd June, 2022 under Section 148A(b) of the Act alleging that the Petitioner is a beneficiary of accommodation entries provided by the entities controlled by Mr.Ashok Kumar Gupta and has
Second notice under Section 148A(b) is invalid when an initial notice under Section 148 has already been served; Supreme Court directions pertain to a different timeframe and do not apply.
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 emphasized the importance of providing all relevant material and documents to the petitioner in a fair and balanced manner, ensuring that the rights and contentions of all parties are left ....
Procedural fairness in tax reassessment mandates that taxpayers are provided all relevant documents and information before being called to respond to allegations, ensuring a fair opportunity for defe....
For a valid reassessment under Income Tax Act, prior recording of reasons for income escapement is mandatory; failure to do so renders the notice void, allowing proceedings on a subsequent properly s....
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.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
Point of Law – Needless to state that if and when such steps are taken and if petitioner has a grievance, he shall be at liberty to take his remedies in accordance with law.
Natural justice mandates adequate opportunities for defense in tax reassessment proceedings; failure to do so invalidates issued notices.
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