Tmen Systems Private Limited Vs ACIT (Delhi High Court)
The Delhi High Court considered a writ petition challenging reassessment proceedings initiated under the Income Tax Act, 1961 for Assessment Year 2020–21. The petitioner sought quashing of the notice dated 21.03.2024 issued under Section 148A(b), the order dated 12.04.2024 passed under Section 148A(d), and the consequent notice issued under Section 148 of the Act. The petitioner contended that the notice issued under Section 148A(b) was vague, scanty, and non-specific, and did not contain sufficient information suggesting escapement of income chargeable to tax. It was also argued that the order under Section 148A(d) was based on a verification report that had no nexus with the petitioner.
Read HC Judgment in this case: SC Declines Relief in Reassessment Dispute as Assessee Should Cooperate With Tax Inquiry
After receiving the notice dated 21.03.2024, the petitioner sought 15 days’ time to file a reply through a letter dated 28.03.2024. The respondent subsequently issued another notice on 29.03.2024 granting time until 10.04.2024 to file a reply. However, the petitioner submitted its response on 28.04.2024, which was beyond the permitted date. Even in this response, the petitioner requested additional time and stated that the respondents had not provided a party-wise breakup of the amount of ₹3,16,00,000, making it difficult to reconcile the figure with its books of accounts. Meanwhile, the respondents had already passed an order under Section 148A(d) on 12.04.2024 and issued a notice under Section 148 initiating reassessment proceedings.
