Nitin Agarwal Vs ITO (Calcutta High Court)
The Calcutta High Court allowed an intra-court appeal filed by the assessee challenging the order dated 8.6.2023 in WPO/1096/2023 concerning reassessment proceedings for assessment year 2019-20 under Section 148A(d) of the Income Tax Act, 1961. The assessee contended that the order dated 13.4.2023 passed by the Assessing Officer was in violation of the principles of natural justice because no opportunity of personal hearing had been granted before reopening the assessment.
The Court examined the notice dated 27.3.2023 issued under Section 148A(b) and observed that although the notice called upon the assessee to furnish a reply along with supporting documents, it was not a notice granting personal hearing. The assessee had filed a reply dated 31.3.2023 denying the allegations and seeking copies of documents, information, enquiry reports, and credential information relied upon by the department. The assessee also reserved the right to file further objections after receipt of those materials.
Subsequently, another notice under Section 148A(b) was issued enclosing certain information. The assessee replied on 12.4.2023 contending that the documents supplied by the department did not establish any bogus purchases or escapement of income. The assessee submitted that party ledgers, account confirmations, signed bills, and purchase registers had already been furnished. It was also argued that failure of another entity to respond to summons could not lead to an inference that the assessee’s purchases were bogus. The assessee again requested relevant documents and liberty to file additional objections.
