Case Law Details
RTPL Marketing Private Limited Vs ITO (Delhi High Court)
Introduction: In the case of RTPL Marketing Private Limited vs. Income Tax Officer (ITO), the Delhi High Court has directed re-adjudication for Assessment Year 2019-20. The matter revolves around an alleged suspicious sale transaction of khadi yarn worth Rs. 31,00,000. The Court’s decision underscores the need to verify additional documents and examines the importance of proper assessment in taxation.
Detailed Analysis: The core issue in this case pertains to Assessment Year 2019-20. The petitioner, RTPL Marketing Private Limited, is under scrutiny due to a sale transaction it engaged in with Sethi International, a proprietorship concern. The transaction involves the sale of khadi yarn with a claimed value of Rs. 31,00,000.
The Income Tax Department has raised concerns about the verifiability of this transaction, primarily because the proprietor of Sethi International, Mr. Manjeet Singh, did not file his Income Tax Return (ITR) for the relevant assessment year.
The case was initially heard in July 2023, where the Court was apprised of the situation and the sequence of events. The petitioner provided responses to the notice issued under Section 148A(b) of the Income Tax Act. They asserted that the sale of goods worth Rs. 31,00,000 was made to Sethi International, supported by invoices and transporter receipts. However, it was highlighted that the transporter receipts lacked a G.R. Number, which raised concerns.
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