Prateek Bulls And Bears Private Limited Vs DCIT (Rajasthan High Court)
The Rajasthan High Court set aside an Income Tax notice issued to Prateek Bulls And Bears Pvt Ltd for the Assessment Year 2018-19, citing procedural lapses and lack of substantive evidence. The case involved a notice under Section 148A(b) of the Income Tax Act, 1961, alleging a credit entry of ₹4.5 crore and a debit entry of ₹4.50 crore in a bank account. The petitioner denied ownership of the mentioned account and provided proof that its ICICI Bank account had been closed in 2010. Despite this, the Assessing Officer (AO) dismissed the objections due to non-response from ICICI Bank within a short timeframe.
The High Court noted that the Income Tax Department failed to adhere to the due process outlined in Section 148A, which mandates providing the assessee with all relevant materials before issuing a reassessment notice. The department did not disclose the name of the bank in which the alleged transactions took place, making it impossible for the petitioner to respond effectively. Furthermore, ICICI Bank later confirmed via emails in April and May 2022 that the account mentioned in the notice did not exist. However, the AO had already passed the order without waiting for this crucial information.
