In a recent case, the Delhi High Court has set aside the reassessment order since the Assessing Officer (AO) refused to consider the bank statement and D- MAT account of the assessee.
The petitioner, Standard Chartered Bank UK challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961 [“Act”] and the order passed under Section 148A(d) of the Act.
The reassessment proceeding was initiated based on the information/material received by the respondents/revenue that the petitioner had received Rs.156,15,43,994/- in the form of other income and/or fees for technical services, from Vodafone Mobile Services Limited.
the information which led to the issuance of the notice dated 31.03.2023 under Section 148A(b) of the Act. The petitioner was granted time till 28.04.2023 to file a response. The record seems to disclose that a response was, indeed, filed by the petitioner on 26.04.2023.
that the notice had been issued by an officer who had no jurisdiction. It was pointed out that an assessment under Section 143(3) of the Act has been made via order dated 25.05.2022 by the ACIT, International Taxation, Circle 4(2)(2), Mumbai, whereas notice was issued by an officer located in New Delhi, i.e., respondent no.1.
the information and material based on which the notice was issued had not been furnished to the petitioner. It appears that respondent no.1 passed an order dated 03.05.2023 under Section 148A(d) of the Act, without having regard to the reply dated 26.04.2023 filed by the petitioner.
The Assessing Officer (AO) set aside the order and the consequent notice of even date issued under Section 148 of the Income Tax Act, 1961.
While allowing the appeal, the division bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia the AO passed a fresh order. However, before the AO proceeds to pass a fresh order, he will furnish the petitioner with the information/material that he has in his possession.
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