Case Law Details
Vinayak Services PVT LTD Vs ITO (Delhi High Court)
Introduction: In a notable legal development, the case of Vinayak Services PVT LTD vs ITO (Delhi High Court) has come to the forefront. This case centers around the quashing of a Section 148A(d) order issued by the Income Tax Officer (ITO) on the grounds that the underlying Section 148 notice was time-barred. The Delhi High Court’s judgment in this case holds significant implications for the realm of tax assessment procedures, shedding light on the importance of adherence to procedural and statutory requirements.
Analysis: The crux of the matter lies in the petitioner’s plea to annul an order and notice issued under Sections 148A(d) and 148 of the Income Tax Act, 1961, respectively. These impugned documents were founded on a notice dated 28.06.2021 issued under Section 148 of the Act for the Assessment Year 2014-2015. However, the petitioner’s legal counsel contends that the notice was dispatched on 14.07.2021, which, as per their argument, renders the subsequent proceedings time-barred.
A crucial legal angle in this case is the petitioner’s assertion that the income alleged to have escaped assessment had already been subjected to taxation in the hands of the creditor under Section 68 of the Income Tax Act. This raises pertinent questions about the legality of pursuing reassessment in light of previously taxed amounts.
To support their case, the petitioner’s legal representative refers to a judgment rendered by a coordinate bench of the Delhi High Court on September 27, 2022, involving similar issues. This previous judgment, titled Suman Jeet Agarwal vs. Income Tax Officer, is cited as a precedent that lends weight to the petitioner’s contention regarding the time-barred notice.
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