In a recent judgement, the Delhi High Court (HC) held that the order passed under section 148 of the Indian Constitution without considering a reply from the assessee is not valid.
Ashok Kumar Garg, the petitioner order dated 30.03.2022 passed under Section 148A(d) of the Income Tax Act, 1961 [“the Act”] and the consequential notice of even date i.e., 30.03.2022, issued under Section 148 of the Act.
As per Section 147 of the Income Tax Act, of 1961, the Income Tax Department has the power to reassess an individual’s previously filed income tax returns. The Assessing Officer could pick your income tax return for reassessment subject to some pre-defined criteria by sending a notice under section 148 for income Escaping Assessment.
The broad allegation against the petitioner is that he is a beneficiary of bogus purchase bills furnished by three entities referred to in the notice and the impugned order. It is the petitioner’s stand that out of the three entities mentioned it is only dealt with two, out of three entities.
The amount of alleged bogus purchase bills has been quantified as Rs.24,10,705/- the amount in issue is only Rs.13,73,503/-. It is, thus, the petitioner’s case that Rs.10,37,202/- has been wrongly included. The revenue stated that the reply was on record, and the impugned order wrongly notes that the petitioner had not filed the reply.
Justice Rajiv Shakdher and Justice Tara Vitasta Ganju directed the Assessing Officer (AO) to carry out a de novo exercise, after giving due opportunity to the petitioner which would include furnishing to the petitioner the information/material available with the AO and the copies of approvals obtained under Section 151 of the Act.
The Court disposed of the writ petition in the aforesaid terms and allowed the petitioner to recourse remedy if aggrieved by the order of AO.
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