Income Tax Act, 1961 – Section 127, 143(2), 143(3), 144, 153A, 153C, 154 and 246A
Indian Evidence Act, 1872 – Section 65A and 65B
Bharatiya Sakshya Adhiniyam, 2023 – Section 63
The revenue filed writ appeals challenging the order of the Single Judge, who allowed writ petitions filed by the assessees, M/s.Vetrivel Minerals and M/s.Vijay Cements, setting aside assessment orders passed under Section 143(3)/144 r/w 153A of the Income Tax Act, 1961. The Single Judge quashed the assessment orders primarily citing violations of natural justice, including non-furnishing of panchnamas, reliance on statements without cross-examination, and violation of Section 65B of the Indian Evidence Act, 1872 regarding electronic records.
The division bench acknowledged arguments from both sides but emphasized the availability of an alternative remedy under Section 246A of the Income Tax Act, namely an appeal before the Commissioner (Appeals), referring to the Supreme Court’s view in Commissioner of Income Tax v. Chhabil Dass Agarwal.