9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (7) TMI 1493 - HC - Income TaxValidity of reopening of assessment - non providing reasonable opportunity of hearing as per Circular dated 22.08.2022 of the Central Board of Direct Taxes - HELD THAT - This Court has found that such reasonable opportunity of hearing was not given before Order u/s 148(d) was issued. In our considered opinion, there is no dispute regarding explanation given under Section 148 regarding information that can be relied upon by the Assessing Officer to reopen assessment of escaped income. Revenue Audit Objections can be considered as a valid ground for opening assessment that has concluded. This Court is of the considered opinion that the reply of the petitioner had specifically asked for documents to be supplied including complete case proceedings and for personal hearing, which was not given. AO has acted in undue haste. The orders passed u/s 148A(d) and u/s148 are set aside. The respondents shall provide all relevant documents that have been asked for by the petitioner in his representation by making payment of necessary fees to the department, within a period of one week from today. The petitioner shall submit his reply within one week, thereafter. WP allowed.
Issues:
Challenging Impugned Notice and Orders under IT Act, Request for Certified Copies of Assessment Proceedings, Violation of Rights to Personal Hearing, Reliance on Legal Judgments and Circulars, Dispute over Audit Objections as Grounds for Reopening Assessment, Importance of Providing Reasonable Opportunity of Hearing, Setting Aside Orders and Directing Provision of Relevant Documents. Analysis: The petitioner filed a writ petition challenging the Impugned Notice dated 20.04.2024 and subsequent Orders issued under the IT Act. The petitioner sought quashing of the Notice, Order, and Show Cause Notice, along with a direction to supply certified copies of assessment and reassessment proceedings. The petitioner's case involved a search and seizure operation, subsequent assessment proceedings, and an appeal against the Assessment Order. The Revenue Audit raised objections leading to a notice under Section 148A(b) of the IT Act. The petitioner's requests for relevant documents and personal hearing were not fulfilled, leading to the impugned Orders dated 24.02.2024 under Section 148A(d) and Section 148 proposing reassessment of income. The petitioner relied on legal judgments from the High Courts of Madras and Bombay, along with a Circular by the Government of India, to support their case. The petitioner emphasized the right to a reasonable opportunity of hearing and pointed out violations in the assessment process. The respondents, on the other hand, cited a judgment from the High Court of Kerala to counter the petitioner's arguments regarding Audit Objections as grounds for reopening assessments. The Court examined the arguments presented by both parties and referred to legal precedents, including judgments by the Supreme Court, to establish the legal framework. The Court acknowledged the importance of providing a reasonable opportunity of hearing to the assessee before passing orders under Section 148(d) of the IT Act. It noted that Revenue Audit Objections could be considered valid grounds for reopening assessments. Ultimately, the Court found that the petitioner's rights to a fair hearing were violated as the Assessing Officer did not provide the requested documents or a personal hearing. The impugned Orders were set aside, and the respondents were directed to provide all relevant documents requested by the petitioner within a week. The petitioner was granted one week to submit a reply, followed by a personal hearing, after which a new order under Section 148(d) was to be passed within three weeks. In conclusion, the writ petition was allowed to the extent of setting aside the impugned Orders and ensuring the petitioner's right to a fair hearing and access to relevant documents in the assessment proceedings.
|
