Chaturbhuj Gattani S/o Shriniwas Gattani Vs ITO (Rajasthan High Court)
The case of Chaturbhuj Gattani, challenging the orders of the Income Tax Officer (ITO) under Section 148 of the Income Tax Act, 1961, revolves around alleged discrepancies in assessment for the assessment year 2019-20.
Chaturbhuj Gattani, proprietor of M/s Tirumala Enterprises engaged in marble and granite trading, filed his income tax return for 2019-20, declaring a total income of INR 3,13,390/-. The dispute arises from the Jurisdictional Authority’s issuance of notices under Section 148A(d) of the IT Act based on alleged bogus purchases from fake entities amounting to Rs. 79,31,854/-.
The petitioner contended that the orders and notices issued lacked compliance with principles of natural justice. Specifically, it was argued that the Jurisdictional Authority failed to provide complete details and materials relied upon before passing the impugned orders. Citing precedents like Union of India vs. Ashish Agarwal, the petitioner emphasized the right to full disclosure of all materials forming the basis of allegations.
The Rajasthan High Court examined Section 148A of the IT Act, which outlines procedures for reassessment based on received information. It noted that while Section 148A(b) mandates providing an opportunity of hearing and basic information to the assessee, it does not specify disclosure of all underlying materials forming the basis for initiating proceedings.
