Vikas Singhal Vs ITO (Delhi High Court)
The Delhi High Court considered a writ petition challenging the notice dated 31.03.2021 issued under Sections 147/148 of the Income Tax Act, 1961 for Assessment Year 2014-15. The petitioner had filed the return of income on 06.09.2014, and a scrutiny assessment under Section 143(3) had been completed on 16.12.2016. During the original assessment proceedings, the Assessing Officer (AO) had issued detailed questionnaires calling for books of account, bank accounts, bank statements, and explanations regarding credit entries, including transactions of ₹1 lakh and above. After examining the material, the AO accepted the returned income and recorded that the return had been thoroughly examined and assessed accordingly.
Nearly five years later, the AO issued a notice under Sections 147/148 after receiving information through the Insight Portal indicating credits of ₹23.77 crore in the petitioner’s bank account, including cash deposits of ₹21.17 crore followed by RTGS transactions of ₹23 crore. The AO recorded that there had been a failure by the assessee to disclose fully and truly all material facts necessary for assessment. The reassessment proceedings were initiated with prior approval of the Commissioner, although the approval referred to “assessment” instead of “reassessment.” During the pendency of the writ petition, the Court permitted the reassessment proceedings to continue but directed that any assessment order passed should not be given effect to.
