Case Law Details
Charu Chains and Jewels Pvt. Ltd. Vs ACIT (Delhi High Court)
The Hon’ble Delhi High Court in Charu Chains and Jewels Pvt. Ltd. v. Assistant Commissioner of Income Tax [W. P. (C) 17577/2022 dated December 22, 2022] set aside the reassessment order against the assessee, on the grounds of non-supply of the information/ material by the Revenue Department for reopening of assessment. Held that, the underlying information/material which forms the basis of triggering the assessment/reassessment proceedings must be furnished to the assessee. Further, directed the Revenue Department to furnish the underlying material concerning the assessee within 3 weeks, to grant personal hearing and, thereafter, take decisions in accordance with law.
Facts:
This petition has been filed by M/s. Charu Chains and Jewels Pvt. Ltd. (“the Petitioner”) against the order dated July 25, 2022 (“the Impugned Order”) passed under Section 148A(d) of the Income Tax Act, 1961 (“the IT Act”) and the consequential notice of even date i.e. July 25, 2022, issued under Section 148 of the IT Act (“the Impugned Notice”) concerning Assessment Year (“AY”) 2016-17.
While carrying out the assessment for the AY 2017-18 the Assessing Officer (“AO”) came across certain unsecured transaction entered into amongst three entities amounting to a total INR 2.7 crore and passed the Impugned Order and the consequent Impugned Notice forming the following views:
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