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PRITINKER DIWAKER, ASHUTOSH SRIVASTAVA
Sidhbali Kripa Enterprises – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to reassessment notice based on partnerships. (Para 2 , 3) |
| 2. arguments on jurisdiction and natural justice. (Para 4 , 5) |
| 3. court's analysis on tax reassessment validity. (Para 6 , 7 , 8) |
| 4. legal principles regarding reassessment notice. (Para 9) |
| 5. final dismissal of the writ petition. (Para 10) |
JUDGMENT
Heard Sri Atul Gupta, learned counsel for the petitioner and Sri Gaurav Mahajan, learned counsel for the Revenue.
2. The challenge laid in this writ petition is to the order dated 31.03.2023 and impugned notice dated 31.03.2023 whereby and where under the reassessment proceedings for the assessment year 2019-20 are sought to be initiated. A prayer for prohibiting the Respondent No.1 or any other Income Tax Authority from proceeding further with the reassessment proceedings for Assessment Year 2019-20 has been sought.
3. It is the case of the petitioner that it is a partnership firm formed on 18.04.2018 by five partners for the purposes of carrying on business of wholesale distributorship or C&F Work. The partnership firm was reconstituted on 01.11.2019 and a new partnership firm was registered as 2 out of 5 partners existed from the firm. The remaining par
The legality of reassessment proceedings under the Income Tax Act requires scrutiny, yet initial error claims can only be addressed post-assessment.
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 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 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 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....
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....
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 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.
Notices issued under Section 148 of the Income Tax Act beyond the limitation period are illegal and void, leading to the quashing of all consequential orders.
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