According to the Allahabad High Court, the accuracy of the information available cannot be verified before the notice under Section 148 of the Income Tax Act is issued.
Title: Deepak Kumar Yadav v. Principal Commissioner of Income Tax and Anr.
Decided on: 5th May, 2023.
WRIT TAX No. – 561 of 2023
CORAM: Hon’ble Ashwani Kumar Mishra,J. Hon’ble Shiv Shanker Prasad ,J.
Introduction.
One Mohd. Farhan, who is accused of calling Indian Prime Minister Narendra Modi “a virus who requires an urgent antidote” in a video posted on social media, has received an interim order from the Allahabad High Court. When dealing with a writ petition filed by the accused-petitioner seeking to have the FIR filed against him under Section 504 IPC and Section 66 of the IT Act quashed.
Analysis.
On the grounds that the accuracy of the information based on the assessee’s defence can be determined in the assessment proceedings under Section 148 of the Act, the Allahabad High Court dismissed a writ petition contesting the validity of the order under Section 148A(d) of the Income Tax Act, 1961 and the consequential notice under Section 148 of the Act. Under Section 148A(d), an investigation is only conducted to the extent that information that would indicate that income has escaped assessment is (un)available.
The bench ruled that the merits of the information that falls under Section 148A remain subject to the reassessment proceedings that were started after receiving a notice under Section 148 of the Act, as well as the final determination made by the assessing authority under Section 246-A of the Act.
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Written by- Varada Hawaldar