Court sets aside order challenging show cause notice under Income Tax Act for AY 2018-19, orders fresh assessment. The court set aside the impugned order and notice challenging a show cause notice and order under the Income Tax Act for the Assessment Year 2018-19. The ...
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Court sets aside order challenging show cause notice under Income Tax Act for AY 2018-19, orders fresh assessment.
The court set aside the impugned order and notice challenging a show cause notice and order under the Income Tax Act for the Assessment Year 2018-19. The Assessing Officer was directed to pass a fresh order within four weeks, considering the documents and scrutiny assessment order of the involved entity. The petition was disposed of, maintaining the parties' rights and contentions open.
Issues: Challenge to show cause notice under Section 148A(b) and order under Section 148A(d) of the Income Tax Act, 1961 for Assessment Year 2018-19.
Analysis: The petitioner challenged a show cause notice dated 22nd March, 2022, under Section 148A(b) of the Income Tax Act, 1961, and an order under Section 148A(d) dated 6th April, 2022, along with a notice issued under Section 148 of the Act for the Assessment Year 2018-19. The notice alleged that transactions made by Vishesht Financial Services Private Limited (VFSPL) through the petitioner-broker resulted in income escapement as VFSPL could not provide PAN/GSTIN details of the entities involved in the transactions. The petitioner contended that it is a SEBI registered broker providing an online trading platform without involvement in clients' transactions. The petitioner argued that the notice issued under Section 148 of the Act was illegal based on the assessment of VFSPL. Despite VFSPL's scrutiny assessment concluding without additions, the impugned order under Section 148A(d) was passed without considering the petitioner's detailed reply, requesting information supporting the reopening of assessment. The court noted discrepancies in the assessment process and directed the Assessing Officer to pass a fresh order under Section 148A(d) within four weeks, considering the documents and scrutiny assessment order of VFSPL, where PAN/GSTIN details were furnished. The impugned order and notice were set aside, and the petition was disposed of, leaving the parties' rights and contentions open.
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