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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
MR. JUSTICE AVNEESH JHINGAN, MR. JUSTICE ASHUTOSH KUMAR, JJ
Shree Cement Limited, Having Its Office At Bangur Nagur, – Appellant
Versus
Deputy Commissioner Of Income Tax, Acit – Respondent
Order :
AVNEESH JHINGAN, J.
1. This petition is filed seeking quashing of the order dated 17.04.2023 passed under Section 148-A (b) of the Income Tax Act, 1961 (for short ‘the Act’).
2. The relevant facts are that the petitioner-Company filed the returns for the Assessment Year 2019-2020. A notice dated 27.03.2023 under Section 148-A(b) was issued annexing the reasons for initiating reassessment proceedings. The petitioner filed objections dated 11.04.2023 filed by petitioner were rejected vide order dated 17.04.2023. Hence, the present petition.
3. Learned senior counsel for the petitioner submits that the initiation of the reassessment proceedings is on the basis of suspicion. In the chain made out by the Investigation Wing, relying upon the information from the Goods and Services Tax department, the transactions by one of the dealers was found doubtful. The contention is that there is no material for initiating the reassessment proceedings.
3.1 The grievance is that the petitioner in the objections had specifically stated that the information received by the department is wrong. As per the department, petitioner made purchases from Mr. Saswata Bhattacharya of Rs.1,45,45,088/- and of
The Assessing Officer must provide an opportunity for hearing and consider the assessee's objections before issuing a notice under Section 148, ensuring adherence to principles of natural justice.
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 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.
The court emphasized that reopening assessments under the Income Tax Act requires adherence to mandatory procedures, and failure to provide necessary information to the assessee invalidates the proce....
The court established that under the amended Section 148A of the Income Tax Act, the requirement to record 'reason to believe' has been replaced with a subjective decision-making process, allowing fo....
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....
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 court upheld the authority of the Assessing Officer to reassess income under amended provisions of the Income Tax Act, reinforcing that objections can be addressed during reassessment proceedings....
The legality of reassessment proceedings under the Income Tax Act requires scrutiny, yet initial error claims can only be addressed post-assessment.
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