{"id":27157,"date":"2022-05-21T19:52:05","date_gmt":"2022-05-21T14:22:05","guid":{"rendered":"https:\/\/itatonline.org\/digest\/divya-capital-one-p-ltd-v-acit-delhihc-www-itatonline-org\/"},"modified":"2022-05-21T19:52:05","modified_gmt":"2022-05-21T14:22:05","slug":"divya-capital-one-p-ltd-v-acit-delhihc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/divya-capital-one-p-ltd-v-acit-delhihc-www-itatonline-org\/","title":{"rendered":"Divya Capital One (P ) Ltd v. ACIT (Delhi)(HC) www.itatonline .org"},"content":{"rendered":"<p>The assessee is in the business of\u00a0 Trading in derivatives . The order u\/s 148A was passed assessment order was passed understanding the nature of the business and non application of mind\u00a0 by proposing to make addition of Rs\u00a0\u00a0 Rs\u00a0 10, 07 05, 88, 04 , 543 ) Rupees One lakh seven hundred and five crores\u00a0 eighty\u00a0 lakhs four thousand five hundred and\u00a0 forty -three only.<strong>\u00a0 <\/strong>The\u00a0 assessee challenged the said order by filing writ petition . Allowing the petition the Court observed that whether it is \u201cinformation to suggest\u201d under amended law or \u201creason to believe\u201d under erstwhile law the benchmark of \u201cescapement of income chargeable to tax\u201d still remains the primary condition to be satisfied before invoking powers under Section 147 of the Act. Merely because the Revenue-respondent classifies a fact already on record as \u201cinformation\u201d may vest it with the power to issue a notice of re-assessment under Section 148A(b) of the Act but would certainly not vest it with the power to issue a re-assessment notice under Section 148 of the Act post an order under Section 148A(d) of the Act.<\/p>\n<p>\u00a0<\/p>\n<p>As the Order was arbitrary, cryptic and without application of mind, and the Assessee was not given a fair chance of representation, the impugned order issued under Section 148A(d) of the Act and the notice issued under Section 148 of the Act are quashed and the matter is remanded back to the Assessing Officer for a fresh determination. ( W.P.(C) 7406\/2022 dated May 12, 2022)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 148A: Reassessment &#8211; Conducting inquiry, providing opportunity before issue of notice &#8211;    Order passed without considering the replies of the assessee &#8211;  Assessed income was Rs  10, 07 05, 88, 04 , 543 ) Rupees One lakh seven hundred and five crores  eighty  lakhs four thousand five hundred and  forty -three only)  &#8211;  Information to suggest &#8211; arbitrary, cryptic and without application of mind \u2013 not considering the response of the Assessee \u2013 Mechanical approval &#8211;  Order under section 148A(d) set aside to the stage of the show cause Notice.  (S. 147,  148 , 148A(b), 151 , Art , 226 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-27157","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-741","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27157"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27157\/revisions"}],"predecessor-version":[{"id":27158,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27157\/revisions\/27158"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=27157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=27157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}