The Delhi High Court has issued a ruling regarding a writ petition filed by the Assessee against the Revenue’s reassessment proceedings for the Assessment year 2013-2014. The court has set aside the reassessment notice and directed the Revenue to provide the underlying information/material that formed the basis for initiating the reassessment proceedings within four weeks of receiving a copy of the court’s order. The court has also directed that the Assessee should be given at least three weeks to respond to both the notice and the material furnished by the Revenue.
The Assessee had filed the writ petition, claiming that the information/material that formed the basis of the show cause notice was not revealed to them. The Revenue admitted to not being sure whether the material/information was supplied partially or wholly. Furthermore, the Assessee argued that the reassessment proceedings were initiated by issuing a notice to a non-existent entity, a partnership firm bearing the same name as the Assessee, who is a proprietorship concern.
The court clarified that the Revenue should deal with the Assessee’s contention regarding the request for surrender and cancellation of the PAN allocated to the partnership firm, which is no longer in existence. The court has granted the Revenue the liberty to take the next steps in the matter in accordance with the law.
The court’s ruling emphasizes the importance of providing all relevant information and material to the Assessee while initiating reassessment proceedings. Failure to disclose such information can lead to the reassessment proceedings being set aside, as was done in this case.
In conclusion, the Delhi High Court’s ruling in the writ petition filed by the Assessee against the Revenue’s reassessment proceedings emphasizes the need for complete disclosure of information and material while initiating such proceedings. The court has set aside the reassessment notice and directed the Revenue to provide the underlying information/material to the Assessee within a specified time frame. The Revenue has also been granted the liberty to take further steps in the matter in accordance with the law.
(Related Assessment year : 2013-14) – [Bharat Agro Overseas (India) v. ACIT [TS-1007-HC-2022(DEL)] – Date of Judgement : 21.12.2022 (Del.)]