This document reviews the legal battle in ITA No. 1984/DEL/2022 involving Jaquar And Company Private Limited against the Deputy Commissioner of Income Tax, Central Circle-19, Delhi. The case addresses significant legal concerns over the reopening of the company’s assessment for the 2014-15 fiscal year.
The case centers on an appeal by Jaquar And Company Private Limited against the decision made by the Commissioner of Income Tax (Appeals) which sustained a disallowance of Rs. 25 lakhs initially made by the Assessing Officer under Section 37(1) of the Income Tax Act, 1961. This disallowance was related to professional fees claimed by the company.
The appellant contested the reopening of its assessment, which was based on a notice issued under Section 148 of the Act. The company’s grievance was grounded on the argument that the reopening did not comply with the statutory requirements outlined in Sections 147 to 151. Notably, the company highlighted procedural missteps, particularly the failure to adhere to a four-week waiting period after their objections were dismissed before the reassessment was finalized.
The tribunal acknowledged the procedural lapses and emphasized adherence to judicial precedents that mandate strict compliance with reopening procedures. The rulings referenced include major precedents that establish guidelines on the necessity of waiting periods after an assessee’s objections are overruled before proceeding with reassessment.
The tribunal ultimately set aside the reassessment order on the grounds of these procedural violations, reaffirming the legal principle that the rights of taxpayers must be protected, and statutory procedures strictly followed. This decision underscores the critical oversight function of judicial bodies in tax matters, ensuring that assessments are conducted fairly and within the bounds of the law.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform