Case Law Details
Rinku R. Rai Vs ITO (Bombay High Court)
Introduction: The recent judgment of the Bombay High Court in the case of Rinku R. Rai Vs ITO has significant implications for Income Tax assessments. The petitioner contested a Final Assessment Order dated March 25, 2022, alleging violations of Section 144B of the Income Tax Act. The primary contention was the absence of a draft Assessment Order, as mandated by Section 144B(1)(xvi). Additionally, the petitioner challenged the validity of the notice issued on March 31, 2021, asserting it lacked jurisdiction due to the absence of necessary satisfaction under Section 151.
Detailed Analysis: The petitioner’s counsel, Mr. Nishit Gandhi, argued that the notice for the Assessment Year 2015-16, issued on March 31, 2021, exceeded the four-year limit for re-opening assessments. Emphasizing a procedural flaw, he pointed out that the satisfaction of Additional Commissioner, Range 3(2), Mumbai, did not align with the requirements of Section 151, necessitating approval from concerned Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. .
Mr. Gandhi further contended that the final Assessment Order lacked jurisdiction, as it was issued without providing the petitioner with a draft Assessment Order under Section 144B(1)(xvi). This, he argued, was a mandatory requirement under the Faceless Assessment Scheme incorporated in the Act.
In response, Mr. Akhileshwar Sharma, representing the Revenue, admitted in the Affidavit-in-Reply that the approval for re-opening was obtained from the Additional Commissioner, Income Tax. However, he contested the petitioner’s claim, stating that the non-issuance of the draft Assessment Order was an uncontroverted fact.
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Really a good case for knowledge of CAs and Lawyers.
When the law imply issuance of draft assessment order how can a verbatim ssy not mandatory?
Case study gives more knowledge. Thanks for publishing it.