Chaturbhuj Gattani Vs ITO (Rajasthan High Court)
The case of Chaturbhuj Gattani vs. Income Tax Officer (ITO) before the Rajasthan High Court presents a significant legal battle involving procedural aspects of income tax law. This case revolves around the issuance of notices under Sections 148 and 148A of the Income Tax Act, 1961, which pertain to the reopening of assessments. The petitioners, represented by Chaturbhuj Gattani, challenged the orders and notices issued by the Jurisdictional Authority, claiming procedural violations and non-compliance with principles of natural justice.
Background of the Case
Chaturbhuj Gattani, the proprietor of M/s Tirumala Enterprises, is engaged in trading marbles, stones, and granite. Regularly filing income tax returns, Gattani declared a total income of INR 3,13,390 for the assessment year 2019-20. The Jurisdictional Authority issued a notice on 13.3.2023 under Section 148A(b) of the Income Tax Act, requiring Gattani to show cause why a notice under Section 148 should not be issued based on information suggesting escaped assessment.
Gattani responded with a detailed reply, requesting the complete details and particulars of alleged bogus transactions. Despite this, the Jurisdictional Authority passed an order under Section 148A(d) and issued a notice under Section 148, which Gattani subsequently challenged.
Petitioners’ Arguments
