It is unclear whether the notice was sent to an individual or a corporation: The Delhi High Court has dismissed the notice of reassessment.
Case Title: Home Credit India B.V. Versus ACIT
Case No.: W.P.(C) 7397/2023 & CM Nos.28775-76/2023
Date: 26.05.2023
CORAM: HON’BLE MR. JUSTICE RAJIV SHAKDHER, HON’BLE MR. JUSTICE GIRISH KATHPALIA
Introduction
The reassessment notice was rejected by the Delhi High Court due to the department’s failure to apply its intellect. The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has asked the AO to continue the procedure if required after gathering relevant data demonstrating that the petitioner’s income liable to tax has eluded assessment.
The petitioner has filed an appeal against the notification issued under Section 148A(b) of the Income Tax Act of 1961.
Courts Analysis and Decision
The petitioner stated that the accusation relates to an investment in shares lacking substance on record, which would be taxable income that had eluded assessment. According to the petitioner, the notification requests a copy of the passport with trip data.
Because the petitioner, i.e., the noticee, is a corporation, this information could not have been obtained from it. In addition, the Assessing Officer (AO) requested a tax residence certificate.
The court observed that the AO was unsure whether he was serving notice on a human or a business organisation. The court remanded the case to the AO to conduct a new trial.
Judgment- click here to review the judgment3
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Written by- Anushka Satwani