The case ITA No. 724/Del/2020 involves Suksham Finlease & Investment P. Ltd., based in New Delhi, and the Income Tax Officer, Ward-24(3), pertaining to the assessment year 2010-11. This case, heard on April 12, 2023, focuses on the legal intricacies of income tax reassessment and procedural justice.
Suksham Finlease & Investment P. Ltd. challenged the reassessment order dated December 29, 2017, which was passed under sections 143(3) and 147 of the Income Tax Act. The company argued that the reassessment was arbitrary, bad in law, and lacked a proper legal basis, leading to an impugned addition of Rs. 1,02,00,000 under section 68.
The appellant raised multiple legal points concerning the validity of the reassessment process. Key arguments included the invalidity of the reassessment due to lack of independent verification by the Assessing Officer, and the procedural failures in adhering to the principles laid down by the Supreme Court in the case of GKN Driveshaft. Additionally, the appellant contested the CIT (Appeal)’s decision for not providing a fair hearing and the inability to cross-examine or access investigation reports referred to by the Assessing Officer.
The Tribunal, presided over by Sh. N.K. Billaiya, Accountant Member, and Sh. C.N. Prasad, Judicial Member, considered the various allegations of procedural lapses and legal errors. It was observed that the CIT (Appeals) had indeed failed to provide adequate opportunity for the appellant to be heard, and there were significant concerns about the legality of the reassessment procedure used.
The Tribunal’s decision highlighted the need for strict adherence to legal procedures in tax reassessments. The case was significant in underscoring the principles of natural justice in the realm of tax law, emphasizing that the rights of the assessee must be safeguarded against procedural errors by tax authorities.
The appeal was ultimately dismissed as withdrawn by the counsel for the assessee, with the decision pronounced in open court on April 12, 2023. This conclusion adds a layer of complexity to the case, suggesting potential settlements or reconsiderations outside of the tribunal’s proceedings.
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