AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment Notice

The Delhi High Court has quashed the reassessment notice for non-application of mind by the department.

The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has directed the AO to recommence the proceeding if deemed necessary after gathering the relevant material that would show that income chargeable to tax has escaped assessment by the petitioner.

The petitioner has challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961.

The petitioner contended that the allegation concerns investment in shares without material on record, which would constitute income chargeable to tax and had escaped assessment.

The petitioner stated that the notice seeks a copy of the passport reflecting travel details. The petitioner, i.e., the noticee, is a company, therefore, this information could not have been sought from it. The Assessing Officer (AO) also asked for a tax residency certificate.

The court noted that the AO was completely unclear whether he was issuing notice to an individual or a corporate entity.

The court remitted the matter to the AO to conduct a de novo exercise.

Case Title: Home Credit India B.V. Versus ACIT

Citation: 2023 LiveLaw (Del) 534

Date: 26.05.2023

Counsel For Petitioner: Sachit Jolly

Counsel For Respondent: Sanjay Kumar

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