Case Law Details
Micro Marbles Private Limited Vs ITO (Rajasthan High Court)
Lack of supplying supporting documents for ‘reason to believe’ is a flagrant violation of the principles of natural justice
The Hon’ble Rajasthan High Court in Micro Marbles Private Limited v. Office of the Income Tax Officer, Ward-1, Chittorgarh, Rajasthan [D.B. Civil Writ Petition No. 13719/2021 dated January 4, 2023] set aside the notice issued by of the Income Tax Officer for reopening of assessment of the assessee on the grounds of reasons to believe that the assessee had escaped assessment. Held that, non-supply of documents referred in the ‘reason to believe’ notice along with the notice to the assessee deems the reassessment proceeding and any consequential proceedings illegal and is a flagrant violation of the principles of natural justice.
Facts:
Micro Marbles Private Limited (“the Petitioner”) is a private limited company involved in the manufacturing of marble slabs and tiles. The Petitioner received a notice dated March 30, 2021 (“the Impugned Notice”) under Section 148 of the Income Tax Act, 1961 (“the IT Act”) issued by the Office of the Income Tax Officer (“the Respondent”), stating that the Respondent had ‘reasons to believe’ that the income of the Petitioner for the Assessment Year 2017-18 (“AY – 17-18”) had escaped assessment, and the reason for issuance of the Impugned Notice was stated to the Petitioner that it had allegedly received bogus loan/sale/purchase amount of INR 93,21,520/-, as per the information received.
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