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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Concept Studio (India) Private Limited – Appellant
Versus
Income Tax Department – Respondent
| Table of Content |
|---|
| 1. challenge to tax order under section 148a(d) (Para 1) |
| 2. petitioner's argument on non-supply of documents (Para 2 , 3) |
| 3. respondent's concession to set aside the order (Para 5) |
| 4. court's directive for re-assessment with provided documents (Para 6) |
| 5. order for disposal of the writ petition (Para 7) |
JUDGMENT
Manmohan, J.
C.M.No.45768/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.14897/2022 & C.M.No.45767/2022
1. Present writ petition has been filed challenging the order passed under Section 148A(d) of the Income Tax Act, 1961 [`the Act'] and the notice issued under Section 148 of the Act both dated 27th July, 2022 for the Assessment Year 2013-14.
2. Learned counsel for the Petitioner states that the impugned order dated 27th July, 2022 passed under Section 148A(d) of the Act is a nonspeaking order that does not discuss any of the contentions raised by the Petitioner. He states that the Petitioner in its reply dated 06th June, 2022 informed the Respondents that the sale deed supplied by the Respondents as part of the information was a `corrupt file' which did not open in the petitioner's compute
The issuance of a reassessment notice must adhere to principles of natural justice, including consideration of all relevant submissions by the assessee.
The court established that failing to consider a taxpayer's submission violates procedural fairness in tax assessments, necessitating the annulment of prior notices.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
Court emphasized that reassessment notices must consider all disclosures made by the taxpayer, reaffirming the principle of natural justice when reviewing prior returns.
A petitioner can challenge proceedings based on incorrect factual assumptions about income tax return filings, and the Assessing Officer must respond appropriately to rebuttals presented.
Administrative orders can be set aside by courts if found to be flawed in execution, ensuring rectification of inaccuracies in legal processes.
Section 148A advisedly uses the expression ‘enquiry’.
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.
Orders based on vague allegations without specific details violate the right to a fair hearing under tax law.
Notices under Income Tax Act must contain clear allegations to allow adequate defense, failing which they may be set aside.
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