Shameer Razaik Vs PCIT (Karnataka High Court)
Karnataka High Court held that passing of order on information procured from Stock Exchange and banks without furnishing the information to petitioner for their explanation is violative of principles of natural justice and hence set aside.
Facts- The petitioner has filed the present writ petition under Articles 226 and 227 of the Constitution of India praying to quash orders under Section 264 of the Income Tax Act, 1961. It is argued that the respondents refer to certain information procured from the Stock Exchange and Banks which had not been furnished to the petitioner for his explanation thereby violating the principles of natural justice.
Conclusion- Held that reliance is placed by respondent No.1 on certain information said to have been procured/prescribed from the Stock Exchange and Banks. In this regard, the material on record would indicate that there is nothing to show that the said information had been furnished to the petitioner for the purpose of enabling him to have his say/explanation and as such impugned order is violative the principles of natural justice and the same deserves to be set-aside.
Held that the material on record demonstrates that the petitioner had made investment and availed the benefit of Income Declaration Scheme under Section 183 of the Finance Act, 2016, which would have an impact on the claim of the petitioner and the said aspect having not been considered by the respondent, is yet another circumstance that would vitiate the impugned order, which deserves to be set-aside and the matter remitted back for reconsideration afresh in accordance with law.
