Case Law Details
Dilpreet Singh Chhabra Vs ITO (Orissa High Court)
The petitioner-assessee sought re-adjudication of the assessment order due to a medical situation in the family that prevented timely response to the show cause notice.
The case revolves around a show cause notice issued under section 148-A of the Income Tax Act, 1961, based on information from the INSIGHT portal. The petitioner claimed that a medical situation in the family, supported by a medical certificate, hindered their response to the notice. However, the revenue contended that despite opportunities, the assessee did not respond, justifying the assessment made.
The High Court analyzed the show cause notice and found no issues with its validity. It observed that the notice properly relied on information obtained from the INSIGHT portal, and the AO detected income escapement. Nevertheless, the High Court considered the petitioner’s medical situation and set aside the assessment order on grounds of equity.
The case of Dilpreet Singh Chhabra Vs ITO highlights the importance of considering genuine reasons for non-response in tax proceedings. The High Court’s decision to direct re-adjudication due to the medical situation in the family demonstrates the court’s concern for fairness in tax assessments.
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