Case Law Details
Somnath Dealtrade Private Limited Vs Union of India & Ors. (Calcutta High Court)
Introduction: The case of Somnath Dealtrade Private Limited Vs Union of India & Ors. in the Calcutta High Court involves a significant challenge to an order dated 13th April, 2022, passed under Section 148A(d) of the Income Tax Act, 1961. The appellant, Somnath Dealtrade Pvt. Ltd., filed the appeal against the dismissal of its writ petition concerning the reopening of assessment for the assessment year 2018-2019.
Detailed Analysis: The crux of the matter revolves around the notice issued to the assessee under Section 148A(b) of the Act, dated 22nd March, 2022. The assessing officer relied on information obtained from the insight portal, alleging an unexplained transaction of Rs.36,00,000/- with Winsome Commutate Pvt. Ltd. The appellant responded with a detailed reply on 9th April, 2022, contesting the accuracy of the information and providing supporting documents.
Despite the appellant’s timely submission, the assessing officer proceeded to pass an order under Section 148A(d) on 13th April, 2022. The Calcutta High Court, in its analysis, identified several procedural irregularities. The court emphasized the assessing officer’s failure to address the objections raised by the appellant, lack of discussion on the documents submitted, and the absence of a reasoned order.
The court referred to relevant precedents, highlighting the importance of a meaningful and effective opportunity for the assessee. It stressed that the opportunity granted under Clause (b) of Section 148A should not be a mere formality but a genuine chance for the assessee to present their case. The court cited the need for the assessing officer to furnish complete information from the insight portal and provide adequate time for the assessee to respond.
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