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2024 (3) TMI 668 - HC - Income TaxReopening on the basis of income declared in the IDS and Form-4 - HELD THAT - Reopening on the basis of income declared in the IDS and Form-4 having been issued, there can be no escapement of income as alleged in the information, thus quashing the impugned reopening notices u/s 148.
Issues involved: Availing income declaration scheme 2016, non-credit of amounts paid, correction of head of challan credit, challenge to reopening notice u/s 148.
The judgment addressed the issue of the petitioner availing the income declaration scheme 2016 and facing challenges regarding the credit for amounts paid to the department for specific assessment years. The petitioner claimed to have made payments through self-assessment tax and TDS, but credit for these amounts was not being recognized, leading to the petitioner being declared a defaulter under the scheme. The court noted the importance of correcting the head of challan credit to resolve the matter effectively. The respondents were directed to make the necessary correction by a specified date to facilitate the closure of the IDS file and subsequent proceedings, including the reopening notice. The petitioner was granted leave to amend the petition, with corresponding rights and contentions of the respondents being kept open. The case was adjourned for further proceedings. Regarding the challenge to the reopening notice under section 148 of the Income Tax Act, the petitioner contested the notice based on the disclosure of unaccounted income under the IDS. The reopening was initiated due to alleged default in tax payment despite the income declaration. The petitioner argued that since Form-4 had been issued under the IDS, there was no escapement of income as claimed in the information leading to the reopening. The court agreed with the petitioner's submissions and granted relief by declaring the impugned reopening notices and subsequent orders as without jurisdiction, illegal, and arbitrary. A writ of certiorari was issued to quash the reopening notices and related orders, thereby disposing of the petition.
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