Case Law Details
Standard Chartered Bank UK Vs ACIT (Delhi High Court)
Introduction: The case of “Standard Chartered Bank UK vs ACIT” involves an appeal to the Delhi High Court against an order of reassessment for Assessment Year 2019-20. The petitioner, Standard Chartered Bank UK, challenged the validity of the reassessment order on the grounds of jurisdiction and non-consideration of crucial information provided in its response to the notice.
Analysis: The Delhi High Court reviewed the orders and notices issued in the case, including the notice under Section 148A(b) of the Income Tax Act, the order under Section 148A(d) of the Act, and the consequential notice under Section 148 of the Act. The petitioner raised two key issues in its response to the notice: firstly, that the notice had been issued by an officer lacking jurisdiction, and secondly, that the information and material forming the basis of the notice had not been shared with the petitioner.
The court found that the Assessing Officer (AO) had not properly considered the petitioner’s response, as the AO had not addressed the jurisdictional concern or provided the petitioner with the relevant information. The court concluded that the reassessment order and consequent notice were to be set aside due to the AO’s failure to adequately address these issues.
The court ordered that the AO should furnish the information and material in his possession to the petitioner, allowing them two weeks to review it and submit a response. The AO was also directed to grant a suitable timeframe for the petitioner’s response and to provide a personal hearing to the petitioner’s authorized representative. The court emphasized that the AO should pass a speaking order and furnish a copy of it to the petitioner.
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