Case Law Details
Deepak Jain Vs ITO (Delhi High Court)
Introduction: In a significant judgment, the Delhi High Court, in the case Deepak Jain Vs ITO, has quashed reassessment proceedings for income below the threshold monetary limit. The court ruled that the reassessment proceedings were flawed due to a lack of necessary approval and the amount of escaped income being below the prescribed limit.
Analysis: The court established that the escaped income was less than Rs. 50,00,000/-, which falls below the threshold limit specified under Section 149(1)(b) of the Income Tax Act, 1961. Moreover, three years had already passed since the end of the relevant Assessment Year. The department, failing to provide any counter-affidavit, couldn’t dispute the facts stated in the petition, leading the court to accept the petitioner’s assertions. Given these facts, the court ruled that the reassessment proceedings couldn’t progress further, leading to the quashing of the reassessment proceedings.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. On 02.05.2023, we had heard the matter briefly, when we had recorded the following broad contour, concerning the matter at hand:
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