Kanika Chawla Vs ITO (Delhi High Court)
Delhi High Court held that passing of fresh assessment order beyond time limit prescribed under section 153(3) of the Income Tax Act cannot be sustained and hence set aside.
Facts- Petitioner filed return of income u/s. 139(1) declaring total income INR 90,100/-. The return was processed u/s. 143(1) of the Act and the same was accepted. In the year 2008, petitioner was served with a notice issued u/s. 148 of the Act on the basis of information received that the petitioner has received gifts of Rs. 1 crore from Sh. Harish Kumar.
Respondent No. 1 concluded the reassessment proceedings vide order dated 29.12.2008 passed u/s. 143(3)/147 of the Act, assessing the petitioner at Rs. 1,00,90,100/- by making an addition of Rs. 1 crore holding that the gifts received by the petitioner were not genuine.
CIT(A) dismissed the appeal. The Tribunal restored the matter to the file of the AO with certain findings and directions. Despite orders passed by the Tribunal, no action was taken by respondent No. 1 to give effect to the findings and directions of the Tribunal.
Respondent No. 1 again issued notices dated 07.07.2023 and 20.07.2023, directing the petitioner to produce documentary evidence and on 11.08.2023, issued a demand notice raising a demand of Rs. 73,10,948/-. Petitioner deposited INR 36,62,185/- under protest against the raised demand. Upon failure of respondent No. 1 to grant the refund, petitioner filed the instant writ petition to ventilate its grievance against the inaction of the respondents.
