Jitendra Kumar Vs Central Board of Direct Taxes (Madras High Court)
Introduction: The case of Jitendra Kumar vs. Central Board of Direct Taxes, heard by the Madras High Court, revolves around an assessment order and a notice issued under Section 148 of the Income Tax Act, 1961. The petitioner challenged these actions, emphasizing the need for fair opportunities and adherence to principles of natural justice.
Background:
- Assessment Completion: The assessment in question was originally completed on 30.12.2019 under Section 143(3) of the Income Tax Act, 1961.
- Show Cause Notice: A survey conducted earlier led to the issuance of a show cause notice to the petitioner on 18.12.2019. The notice highlighted cash deposits made during the demonetization period.
- Response and Assessment: The petitioner responded to the show cause notice, and subsequently, a scrutiny assessment order was passed on 30.12.2019 under Section 143(3) of the Act.
- Re-Opening Notice: On 31.03.2021, an impugned notice under Section 148 of the Act was issued, seeking to re-open the assessment.
- Reasons for Re-Opening: The Income Tax Department provided reasons for re-opening the assessment on 20.03.2022. These reasons included the assertion that the cash deposit of Rs. 55,10,000 in an ICICI Bank account belonged to the petitioner, contradicting earlier statements.
- Show Cause Notice: The petitioner received a show cause notice on 25.03.2022 and responded by 26.03.2022, requesting a personal hearing.
- Impugned Order: Surprisingly, the impugned order was passed on 29.03.2022, without allowing sufficient time for the petitioner’s response or a personal hearing.
Legal Arguments:
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