Case Law Details
Raj Jain Vs ITO (Delhi High Court)
Introduction: In a notable ruling, the Delhi High Court has reversed a reassessment order against Raj Jain, a case instigated by misinformation concerning a Permanent Account Number (PAN). The ruling underlines the importance of correct and timely information in tax-related matters.
Analysis: The case, linked to the Assessment Year (AY) 2016-17, revolves around the claim that reassessment proceedings were initiated against the petitioner based on erroneous information. The contention was rooted in the alleged sale of an immovable property located in Mumbai, a claim disputed by the petitioner. The source of the misinformation is purported to be an old PAN allocated to the petitioner, which had not been in use since 1999.
The court was shown evidence of a newly assigned PAN to the petitioner. The reassessment, according to prima facie evidence, was instigated due to misinformation given to the Assessing Officer (AO). The court has consequently set aside the reassessment order issued under Section 148A(d) and the notice under Section 148 of the Income Tax Act, 1961.
However, the court has allowed the AO to proceed with the next steps, provided the relevant material/information is supplied to the petitioner. Furthermore, the petitioner must be given the opportunity to respond and be heard before a new order is passed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
