Case Law Details
Udaan Hotels & Resorts Private Ltd. Vs Union of India & Ors. (Calcutta High Court)
The case of Udaan Hotels & Resorts Private Ltd. vs Union of India & Ors. has brought to light a significant question regarding the workings of the Income Tax Act, 1961. The primary concern: whether the materials upon which an opinion was formed by the Assessing Officer under Section 148A(b) need to be disclosed to the petitioner. This ruling has brought into focus the dynamics of full disclosure during the assessment process.
In this case, the petitioner, Udaan Hotels & Resorts Pvt Ltd., challenged the order passed by the Assessing Officer under Section 148A(d) of the Income Tax Act, 1961. The Revenue Authority was accused of reopening past assessments on the allegation of undisclosed income, with the petitioner relying on the safeguards provided by Section 148A(a), (b) & (c).
The Revenue Authority argued that they had followed the procedure as per the requirements under Section 148A(b) and 148A(c). However, the Calcutta High Court pointed out that there was no evidence to show that the information provided by Sri Kailash Kumar Patwari to the Revenue Authority had been disclosed to the petitioner.
The court further observed that the materials that formed the basis for the Assessing Officer’s opinion should be disclosed to the petitioner under the provisions of Section 148A(a), (b), and (c). This implies a requirement for transparency in the assessment process, ensuring that the assessee is made aware of all materials and information used in forming the assessment.
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