R S Alloys Vs ITO (Delhi High Court)
Delhi High Court held that AO has sufficient information available with him to carry out reassessment proceedings. Accordingly, reopening of assessment u/s. 148A of the Income Tax Act upheld and petition dismissed.
Facts- The petitioner, a partnership firm, is engaged in the business of trading of ferrous and non-ferrous metals. The challenge in this petition is to reassessment proceedings for the Assessment Year (AY) 2019-20 which are being carried out under Section 147/148 of the Income Tax Act, 1961 (the Act) in pursuance to the order dated 28.06.2025, issued by the respondent no.1.
Conclusion- It is not the case of the assessee that no opportunity of hearing was granted by the AO pursuant to the notice under Section 148A(1) of the Act, which resulted into the order under Section 143A(3) of the Act. It is also not contested that the present action has been taken based on the information available with the respondent under Risk Management Strategy formulated by the CBDT, which is recognised under Section 148(3)(i) of the Act. It is in pursuance of this that the respondent has taken a view that that income chargeable to tax has escaped assessment in the case of the assessee during the relevant AY.
