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2024 (4) TMI 497 - HC - Income Tax


Issues:
The issues involved in the judgment are the challenge to the impugned order dated 29.12.2019 for the assessment year 2017-18, focusing on the validity of the assessment order, service of notices, and the grounds of challenge raised by the petitioner.

Validity of Assessment Order:
The petitioner challenged the assessment order on various grounds. Firstly, it was contended that the show cause notice lacked a proposal and displayed pre-determination on the part of the respondent, as it concluded that certain transactions would be treated as unexplained income. The petitioner argued that the assessment order was served only on the Chartered Accountant and not directly to the petitioner, leading to delayed awareness of the order. Moreover, it was asserted that one of the bank accounts considered as unexplained income did not belong to the petitioner but to the Electricity Board, indicating an error in the assessment order.

Service of Notices:
The petitioner raised concerns regarding the service of notices, particularly the assessment order, which was allegedly sent to an outdated email address of the Chartered Accountant. This raised issues of proper communication and awareness on the part of the petitioner. The respondent defended the service of notices by stating that the Chartered Accountant's address was listed in the assessee profile, justifying the mode of service.

Grounds of Challenge:
The petitioner contended that the show cause notice and subsequent assessment order suffered from pre-determination, which was deemed arbitrary and in violation of Article 14 of the Constitution of India. The petitioner argued that the show cause notice did not specify a time limit for response, rendering it defective and vitiating the assessment order. The court, after considering arguments from both sides, set aside the impugned order and directed the petitioner to submit objections within a specified period, treating the assessment order as a show cause notice for further assessment proceedings.

 

 

 

 

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