Case Law Details
Dhvanil Hemendra Reshamwala Vs ITO (Gujarat High Court)
Introduction: In a significant legal development, the Gujarat High Court has invalidated an Income Tax Assessment Order, citing violations of Section 144B of the Income Tax Act. The case, titled Dhvanil Hemendra Reshamwala Vs ITO, involves a writ applicant seeking remedies under Article 226 and 227 of the Constitution of India.
Detailed Analysis:
i. Background and Petitioner’s Claims: The individual assessee, Dhvanil Hemendra Reshamwala, contends that the assessment for the A.Y. 2016-17 was initiated through a notice under Section 148. Allegedly, the subsequent proceedings deviated from the mandated procedures. The petitioner raised objections, but they were rejected, leading to the issuance of a final assessment order and a demand notice of Rs.28,09,842.
ii. Non-Compliance with Section 144B: The crux of the petitioner’s argument revolves around the failure of the authorities to adhere to the mandatory procedures laid down in Section 144B of the Income Tax Act. The petitioner asserts that the draft assessment order, a prerequisite under Section 144B(xxi), was not provided, depriving them of the opportunity to contest and resulting in a substantial demand.
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