Case Law Details
Meera Gupta Vs ACIT (Delhi high court)
In a significant ruling, the Delhi High Court has restrained the Income Tax Department from taking any further actions pursuant to an order passed under Section 148A(d) of the Income Tax Act, 1961. This decision came as part of the judgment in the case of Meera Gupta vs. ACIT, shedding light on the legal interpretations and precedents affecting reassessment procedures.
The case, Meera Gupta vs. Assistant Commissioner of Income Tax (ACIT), revolves around the Income Tax Department’s reassessment order under Section 148A(d) of the Income Tax Act. This section pertains to the procedure for reassessment, requiring a notice to be issued before any reassessment order. Meera Gupta, the petitioner, challenged the reassessment order citing procedural lapses and relying on past judicial precedents.
The court noted that the respondent was represented by Mr. Kumar, who was granted a period of six weeks to file a reply, with the petitioner given two weeks thereafter to file a rejoinder affidavit. This procedural timeline ensured that both parties had adequate time to present their arguments comprehensively.
The Delhi High Court observed that the reassessment action was unsustainable at a prima facie level. This observation was based on the fact that a previous search assessment had been annulled by the Income Tax Appellate Tribunal (ITAT). The ITAT’s decision referenced key judgments from the Supreme Court and the Delhi High Court in Principal Commissioner of Income Tax vs. Abhisar Buildwell and Commissioner of Income-tax vs. Kabul Chawla.
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