Non-Supply Of Survey Report, Delhi High Court Stays Reassessment Proceedings Against Centre For Policy Research

The Delhi High Court has stayed the reassessment proceedings against the Centre for Policy Research.

The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the entire survey report was not submitted to the petitioner; only the relied-upon portion of the survey report was provided to the petitioner.

The petitioner has assailed the notices dated March 28, 2023, and March 29, 2023, issued under Section 148A(b) of the Income Tax Act, 1961.

The petitioner challenged an order dated April 19, 2023, passed under Section 148A(d) of the Income Tax Act. In addition, a challenge was laid to the consequential notice dated April 19, 2023, issued under Section 148 of the Income Tax Act.

The petitioner submitted that the reassessment proceeding has been triggered pursuant to a survey carried out against the petitioner. The respondents or department were duty-bound to furnish to the petitioner the entire survey report, as it forms the basis for triggering the reassessment proceeding. There has been a breach of principles of natural justice inasmuch as the survey report, in its entirety, has not been furnished to the petitioner.

The department contended that since the reassessment proceeding was triggered on account of a survey action, the provisions of clause (ii) of Explanation 2 of Section 148 would be applicable. The information that emerged post-survey would be deemed to be considered information, suggesting that income chargeable to tax has escaped assessment.

The court listed the matter on November 22, 2023.

Case Title: Centre For Policy Research Versus Deputy Commissioner Of Income Tax

Citation: 2023 LiveLaw (Del) 466

Case No.: W.P.(C) 7190/2023

Date: 24.05.2023

Counsel For Petitioner: Arvind P. Datar, Sachit Jolly, Disha Jham, Soumya Singh and Sohum Dua

Counsel For Respondent: Vipul Agarwal

Click Here To Read The Order