This article examines the tribunal decision in ITA No. 1268/Del/2019 where the reassessment of Instyle Infrastructure P. Ltd. for the assessment year 2009-10 was quashed due to procedural and jurisdictional flaws.
Instyle Infrastructure P. Ltd., was subjected to a reassessment by the ITO, Ward-12(3), New Delhi, under ITA No. 1268/Del/2019. The case pertains to the assessment year 2009-10, and raises significant legal questions about the invocation of section 147/143(3) under the Income Tax Act, 1961.
The primary issue in the case revolved around the correctness of the jurisdiction under section 148, and the application of mind by the Assessing Officer (AO) based on the information provided by the Investigation Wing. The tribunal noted the absence of independent application of mind and mere reliance on the ‘rubber stamp’ reasons which were considered insufficient for sustaining a legal reassessment.
The tribunal’s decision to quash the reassessment was based on the grounds that the AO failed to independently apply his mind and merely relied on the information from the Investigation Wing, violating mandatory jurisdictional conditions stipulated under the Act. The case references other precedents where similar issues were adjudicated in favor of the assessee, reinforcing the tribunal’s decision.
This ruling underscores the importance of adherence to procedural and jurisdictional norms in tax assessments. It highlights the necessity for AOs to independently verify information and apply their minds before assuming jurisdiction under section 148 of the IT Act.
The quashing of the reassessment for Instyle Infrastructure serves as a pertinent example of judicial scrutiny over tax reassessment procedures, emphasizing the need for transparency and adherence to legal standards by tax authorities.
Reassessment Quashed for Instyle Infrastructure for AY 2009-10: A Legal Analysis
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