Case Law Details
Srivenkateshwar Tradex Private Limited Vs PCIT (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court dealt with a case involving Srivenkateshwar Tradex Private Limited and the Principal Commissioner of Income Tax (PCIT). The matter pertained to the Assessment Year (AY) 2019-20 and revolved around notices issued under Section 148A(d) of the Income Tax Act, 1961 (the “1961 Act”). The court’s decision not only quashed the Income Tax notice but also emphasized the importance of adhering to statutory timeframes in such proceedings.
Detailed Analysis:
1. Background: The petitioner, Srivenkateshwar Tradex Private Limited, received notices dated March 5, 2023, and March 27, 2023, under Section 148A(b) of the 1961 Act. These notices were related to alleged bogus purchases made by the company from specific suppliers. The cumulative value of these transactions was substantial, amounting to Rs. 49,40,45,269/-. The petitioner was given short periods to respond to these notices.
2. Response and Assessments: The petitioner filed responses to both notices within the stipulated timeframes. However, the Assessing Officer (AO) was not satisfied with the responses and proceeded to pass an order under Section 148A(d) of the Act on March 31, 2023. This order triggered reassessment proceedings.
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