2023 (1) TMI 483 - HC - Income Tax

High Court sets aside Income Tax Act notices for AY 2013-2014, emphasizing notice and hearing requirements

VIJAY KANSAL PROP. AARTI STEELS Versus ITO, WARD 35 (1) DELHI & ORS.

VIJAY KANSAL PROP. AARTI STEELS Versus ITO, WARD 35 (1) DELHI & ORS. - TMI Issues:Challenge to order under Section 148A(d) of the Income Tax Act, 1961 for Assessment Year 2013-2014.Analysis:The High Court judgment pertains to a writ petition challenging an order passed under Section 148A(d) of the Income Tax Act, 1961, concerning Assessment Year 2013-2014. The petitioner sought interim relief against the order dated 26.07.2022 and notices issued under Sections 148, 148A(b), and 148A(d) of the Act. The court noted observations made by a previous bench regarding the Assessing Officer's conclusions based on information from the Investigation Wing. The court directed the Assessing Officer and an official from the Investigation Wing to be present in court. The impugned order revealed discrepancies in the petitioner's transactions with Sh. Prem Rattan, leading to the initiation of reassessment proceedings. The petitioner denied the transactions and highlighted similar reassessment proceedings for previous assessment years that were dropped upon clarification. The court found merit in the petitioner's contentions and set aside the impugned order and notices, granting liberty to the revenue to take further steps in accordance with the law. The court emphasized issuing a notice to the petitioner in case of fresh proceedings and providing a personal hearing to the petitioner's authorized representative. The writ petition was disposed of accordingly, and pending applications were closed.