Use of information from ‘insight portal’ of the Income Tax Department is a valid grounds for reopening income tax assessments under Section 148: Rajasthan High Court
The Rajasthan High Court has dismissed a writ petition, affirming the use of information from the Income Tax Department’s ‘insight portal’ as grounds for reopening income tax assessments under Section 148 of the Income Tax Act, 1961. M/s Tirumala Enterprises, engaged in trading marbles and stones, filed a return for the 2019-20 assessment year.
The petitioners contested the decision of the Income Tax Officer (ITO) to reopen their assessments, arguing that the information from the ‘insight portal’ lacked credibility and did not constitute valid grounds for reassessment under Section 148. They also claimed they were denied their right to be heard as mandated by Section 148A, which requires the ITO to issue a show-cause notice before reassessment.
The petitioners referenced a previous case where the court held that material relied upon for reassessment must be provided to the assessee.
However, the respondents argued that the required information was supplied, and the decision was made following the law. The Rajasthan High Court recognized the importance of Section 148A but distinguished between the right to be heard and the right to access raw evidence.
The court found that the show-cause notices sufficiently explained the reasons for reassessment and the reliance on ‘insight portal’ information. Therefore, the court upheld the ITO’s authority to use this information for reassessment and dismissed the petitions.
The copy of the order is as under:
