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VIJAY BISHNOI, YOGENDRA KUMAR PUROHIT
Papadmal Agro Foods Pvt. Ltd. – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
Vijay Bishnoi, J.
1. By way of this writ petition, the petitioner has challenged the validity of the order dated 31.03.2023 passed under Section 148A (d) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The petitioner has also challenged the notice dated 05.04.2023 issued by the Assessing Officer under Section 148 of the Act.
2. Facts, necessary for adjudication, are that the petitioner, a private limited company is engaged in the business of manufacturing/trading of papad, namkeens, snacks and other associated derivatives of such products.
3. A notice dated 03.03.2023 was issued to the petitioner under Section 148(b) of the Act, whereby it was asked to show cause why a notice under Section 148 of the Act should not be issued on the basis of information available, which suggests that the income chargeable to tax has escaped assessment for the relevant assessment year 2019-20. The petitioner was required to file reply to the said notice on or before 13.03.2023.
4. The petitioner submitted its reply on 12.03.2023, however, requested to provide time to furnish further clarification/ information. The matter was adjourned to 20.03.2023 and thereafter the petitio
The main legal point established in the judgment is the significance of adhering to the procedure prescribed under Section 148A of the Income Tax Act, 1961 before initiating reassessment proceedings.....
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....
Reassessment under Income Tax Act is impermissible on issues already addressed in a completed assessment, as it constitutes a change of opinion without new material evidence.
The court established that the discretionary nature of inquiries under Section 148A does not mandate a personal hearing or exhaustive justification for the Assessing Officer's decisions.
Assessment under Income Tax requires concrete information indicating escapement of income, which was absent in this case, rendering notices invalid.
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.
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
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