Notice issued pointing income Escapement in the form of Stock/Bills of Entry for Import on deactivated PAN is not valid: Delhi HC [Read Order]
![Notice issued pointing income Escapement in the form of Stock/Bills of Entry for Import on deactivated PAN is not valid: Delhi HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/11/Notice-income-Escapement-Stock-Bills-of-Entry-PAN-Delhi-HC-taxscan.jpg "Notice issued pointing income Escapement in the form of Stock/Bills of Entry for Import on deactivated PAN is not valid: Delhi HC [Read Order]")
The Delhi High Court (HC) held that the notice issued pointing to income escapement in the form of stock/bills of entry for import on deactivated PAN is not valid. Mittal International, the petitioner challenged the impugned order passed under Section 148A(d) of the Income Tax Act, 1961 (‘Act’) and notice issued under Section 148 of the Income Tax Act. The Petitioner states that...
The Delhi High Court (HC) held that the notice issued pointing to income escapement in the form of stock/bills of entry for import on deactivated PAN is not valid.
Mittal International, the petitioner challenged the impugned order passed under Section 148A(d) of the Income Tax Act, 1961 (‘Act’) and notice issued under Section 148 of the Income Tax Act.
The Petitioner states that the respondent has conducted the impugned proceedings on deactivated PAN AAAFM2684G, where the Petitioner has repeatedly communicated to the Respondent that it has made all income tax-related compliances on correct/active PAN AAAFM7234J as all relevant financial transactions have been fully recorded and accounted for in regular audited final accounts of Petitioner.
It was further stated that there was subsequent correspondence by the Petitioner communicating the factum of deactivation of incorrect PAN as recently as 18th April 2022 and issued notice. Mr Ajit Sharma, counsel accepts notice on behalf of the respondent.
It was argued by the respondent that the assessee had filed no response on the merits of the case and Rs.10,15,17,895/- was determined as income having escaped assessment in the form of stock/bills of import entry.
The Delhi HC comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora viewed that interest of justice would be served if the petitioner is allowed to file a supplementary reply to the notice issued under Section 148A(b) of the Income Tax Act.
The Delhi HC set aside the impugned order passed under Section 148A(d) of the Income Tax Act and the notice issued under Section 148 of the Income Tax Act, further, the petitioner was directed to file a supplementary reply to the notice issued under Section 148A(b) of the Income Tax Act within four weeks.
To Read the full text of the Order CLICK HERE
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