Case Law Details
Synthite Industries Private Limited Vs ACIT (Kerala High Court)
The case of Synthite Industries Private Limited vs ACIT before the Kerala High Court revolves around the issuance of notices under Section 142(1) of the Income Tax Act. After a previous assessment order was set aside, the petitioner challenged the validity of subsequent notices seeking explanations on additional issues.
Detailed Analysis: Following the quashing of the initial assessment order and a remand for a reevaluation process, the Assessing Authority issued notices (Exts.P9 and P11) to the petitioner under Section 142(1) of the Income Tax Act. The petitioner argued that these notices were beyond the scope of the remand and lacked jurisdiction.
However, the court found no merit in the petitioner’s argument. It clarified that there is no legal prohibition against the Assessing Authority issuing multiple notices. Since the court’s directive was to re-do the assessment process, the authority was entitled to seek explanations on any additional income or issues not previously addressed.
The court emphasized that if the Assessing Authority possesses information regarding unexplained income or other matters, it has the right to request explanations, even if they were not part of the original show cause notice. Therefore, the notices issued by the authority were deemed to be within its jurisdiction.
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