HC Quashes Section 148A(d) Order Based on Cash, Loan & Transaction Records not shared with Appellant
Case Law Details
Krishan Kumar Gupta Vs ITO (Calcutta High Court)
Introduction: A recent case before the Calcutta High Court, titled “Krishan Kumar Gupta Vs ITO,” revolved around a challenge to an Income Tax order dated April 14, 2023, for the assessment year 2019-20. The petitioner alleged a violation of the principle of natural justice, specifically related to the use of certain statements and documents in the order that were not part of the notice under Section 148A(b) of the Income Tax Act, 1961.
Background: The petitioner filed a writ petition challenging the aforementioned Income Tax order issued under Section 148A(d) of the Income Tax Act, 1961. The primary ground for this challenge was the alleged violation of the principle of natural justice. The petitioner contended that the assessing officer, while passing the impugned order, relied on statements and documents related to cash, loans, and transactions mentioned in paragraph 7.3 of the order. These transactions were never indicated in the annexure to the notice issued under Section 148A(b) of the Act. Additionally, no show cause notices were issued regarding these transactions, and there were no indications in the notice under Section 148A(b) of the Act concerning them.
Response from the Respondent: During the proceedings, Mr. Dutt, the learned advocate representing the respondent, could not refute the petitioner’s allegation that the relevant material concerning the transactions was not supplied to the petitioner at any stage before the order under Section 148A(b) of the Act was passed.
Court’s Decision: After considering the facts, circumstances, and submissions of both parties, the Calcutta High Court disposed of the writ petition. The court set aside the impugned order under Section 148A(d) of the Income Tax Act. It directed the petitioner to file a reply/response to the impugned order under Section 148A(d) of the Act, treating the allegations therein as a show cause notice. The petitioner was given a period of four weeks to file this response from the date of the court’s decision.
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