INCOME TAX ACT, 1961

Section 148

Reassessment - Writ - Maintainability - Liberty to assessee to raise legal ground before authority

Assessee filed his return of income regularly and facts with reference to the shares purchased by assessee were not disputed. However, assessee submitted that he was not a director of M/s. B. and without even hearing him and not providing any opportunity to defend his case, the order was passed under section 143(3). The said was in violation of principles of natural justice and subsequently, Revenue issued notice under section 147 for reopening of assessment for the assessment year 2009-10. It was further contended that notice was issued beyond the period of limitation contemplated and on that ground also, the orders were unsustainable. Held: Admittedly in the present case no direct orders were passed and AO had reason to believe for reopening of assessment under section 147 and consequently issued a notice under section 148. Thus, assessee was entitled for an opportunity to defend his case including the factual aspects submitted even before this Court. Assessee was not a director of the Company and was the Ex-director. However, all such disputed facts with reference to the relevant dates and documents were to be verified by Authorities Competent. Thus, assessee was at liberty to raise legal grounds as well as the factual grounds including point of limitation and Authorities Competent shall consider all the grounds raised by assessee.

Relied:GKN Driveshafts (India) Ltd. v. ITO and Others (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 0734 (SC) and Rural Electrification Corp Ltd. v. CIT-(LTU) and another 2013 TaxPub(DT) 1747 (Del-HC).

REFERRED :

FAVOUR : Directions issued

A.Y. : 2009-10

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