Abhishek Mittal Vs Union of India And 2 Ors (Guwahati High Court)
In the case of Abhishek Mittal Vs Union of India and Ors., the Guwahati High Court addressed issues arising from orders passed under Section 148A of the Income Tax Act, 1961, concerning income escaping assessment. The petitioners, Abhishek Mittal (X) and another individual (Y), both challenged the orders issued by the Income Tax Department, which had identified the potential for income to have escaped taxation based on information from a risk management portal. The crux of the challenge was the non-compliance with the procedural requirements of Section 148A, which mandates providing an opportunity for the assessees to be heard before such notices are issued.
Both petitioners had initially filed their income tax returns for the assessment year 2018-19, with their respective cases subjected to scrutiny following a search and seizure operation. The allegations were based on supposed bogus purchases from certain traders, which the petitioners contested, asserting that these were sales, not purchases. Despite submitting documentary evidence to support their claim, the authorities issued notices under Section 148A(b), leading to further complications in the assessment process. The Guwahati High Court examined the procedural errors and the failure to provide a proper hearing, ruling that the notices issued under Section 148A were in violation of the established legal requirements, prompting the court to direct a re-evaluation of the cases.
