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2022 (7) TMI 559 - HC - Income TaxReopening of assessment - validity of notice u/s 148A - Petitioner seeks a direction to the Respondent No. 2 to reopen the income tax portal of the Petitioner Company and allow it three working days to file a reply to the show cause notice and to restrain the Respondents from continuing any proceedings in pursuance - HELD THAT - It is settled law that principle of natural justice is no unruly horse and no lurking land mine as held by Mr.Justice Krishna Iyer in Chairman, Board of Mining Examination and Chief Inspector of Mines Vs. Ramjee 1977 (2) TMI 126 - SUPREME COURT In fact, in M/s S.Tikara Vs. State of M.P. Ors. 1977 (3) TMI 178 - SUPREME COURT it has been held that the principles of natural justice cannot be petrified or fitted into rigid moulds. They are flexible and turn on the facts and circumstances of each case. Consequently, the questions that arise are whether there has been any unfair deal by the respondent? In the present instance, one of the alleged supplier of the petitioner, Mr.Baburam Samasi, has made a statement that he had not carried out the transactions with the petitioner which are appearing in his bank account with ICICI Bank Ltd. In view of the testimony of the supplier, this Court is of the opinion that the matter has to proceed further. Further, even if the documents now sought to be relied upon by the petitioner are taken into account, this Court is of the view that the notice under Section 148 of the Act was called for as a prima facie case of escapement of income was made out. Moreover, as it is the case of the Respondents that, in the first instance, clear and legible copies were supplied to the Petitioner, this Court is of the opinion that the said dispute cannot be adjudicated in the writ proceedings. Accordingly, the present writ petition along with pending application is dismissed.
Issues:
Challenge to order under Section 148A(d) of the Income Tax Act, 1961 and notice issued for Assessment Year 2013-14. Analysis: The petitioner filed a writ petition challenging the order passed by Respondent No. 2 under Section 148A(d) of the Income Tax Act, 1961, and a notice issued for the Assessment Year 2013-14. The petitioner sought the reopening of the income tax portal, time to file a reply, and a restraint on further proceedings. The petitioner argued that insufficient time was given to file objections as directed by the Supreme Court and that the documents provided were illegible. The Respondent contended that clear copies were provided initially and again later as a precaution. The petitioner believed they would have two weeks from receiving legible documents to respond, but the order was passed prematurely. The Respondent argued that the petitioner's supplied documents were fabricated. The principles of natural justice were discussed, emphasizing flexibility based on circumstances. The alleged supplier denied transactions with the petitioner, raising doubts about the authenticity of the documents. The Court found the matter required further investigation despite the petitioner's arguments. A prima facie case of income escapement was established, justifying the notice under Section 148 of the Act. The Court dismissed the writ petition but clarified that the Assessing Officer should decide independently without influence from the current order. The dispute regarding document authenticity was deemed unsuitable for resolution in writ proceedings due to its complexity. In conclusion, the Court dismissed the writ petition challenging the order under Section 148A(d) of the Income Tax Act, 1961, for the Assessment Year 2013-14. The judgment highlighted the importance of natural justice principles and the need for thorough investigation in cases of alleged income escapement. The Court emphasized the Assessing Officer's duty to decide independently and clarified the limitations of resolving complex disputes in writ proceedings.
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