Case Law Details
Rajnish Yadav Vs ITO (Delhi High Court)
Introduction: In a significant ruling, the Delhi High Court has directed a fresh adjudication in the case of Rajnish Yadav Vs ITO. The Income Tax Department alleged that Yadav benefited from accommodation entries provided by one Mr Sanjay Jain and made bogus purchases, which totalled up to Rs. 11,98,577/-. The crux of the case lies in a notice issued under Section 148A(b) of the Income Tax Act, 1961, for which the court found that relevant material had not been supplied to Yadav, hampering his ability to respond effectively.
Analysis: This judgment reemphasizes the necessity for transparency and fairness in proceedings of this nature. The High Court noted that the Assessing Officer (AO) did not furnish the relevant information or material that was the basis for the allegations against Yadav. This lack of crucial information led to a decision on 13.04.2023 under Section 148A(d) of the Act, which was deemed inappropriate.
The judgment also draws attention to the reference made to a statement by Mr Sanjay Jain under Section 132(4) of the Act. This statement was allegedly not provided to the petitioner, further reinforcing the grounds for setting aside the order.
Conclusion: In light of the above, the Delhi High Court decided to set aside the impugned order and direct the AO to carry out a de novo exercise. This case sets a precedent for upholding the principles of natural justice and affirms that proper procedure, including the furnishing of relevant documents, is essential in such investigations. It is now upon the AO to pass a fresh order, after providing all relevant documents and information to Yadav, who would then be allowed to reply, ensuring a fair and just trial.
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