2022 (6) TMI 1291 - HC - Income Tax

Reopening of assessment u/s 148A(b) - period of limitation to respond to notice - Petitioner states that only three days time was granted to the Petitioner to respond as against the mandatory statutory period of at least seven days - HELD THAT - Petitioner relies on the decision of this Court in Shri Sai Co-operative Thrift and Credit Society Ltd 2022 (5) TMI 1435 - DELHI HIGH COURT wherein it has been held that under Section 148A(b) of the Act a minimum time of seven days has to be granted to the Assessee to file its reply to the show cause notice. Issue notice. Respondent on instructions states that the Respondent-Revenue has no objection if the present matter is remanded back to the Assessing Officer for a fresh decision in accordance with law. Consequently the impugned order passed under Section 148A(d) of the Act dated 30th March 2022 for the Assessment Year 2018-19 is set aside and the Assessing Officer is directed to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner which is directed to be filed within a week. This Court clarifies that it has not commented on the merits of the controversy.

Summary

Issues involved:
Challenging notice under Section 148A(b) of the Income Tax Act, 1961 for Assessment Year 2018-19; Time granted for response to notice; Violation of statutory mandate; Minimum time required for Assessee to file reply; Remand back to Assessing Officer for fresh decision.

Analysis:

1. The present writ petition challenges the notice issued under Section 148A(b) of the Income Tax Act, 1961, dated 23rd March, 2022, along with the order passed under Section 148A(d) of the Act dated 30th March, 2022 for the Assessment Year 2018-19. The Petitioner contends that only three days were granted to respond, contrary to the statutory requirement of at least seven days. Despite the annexure granting eight days, the e-filing submission portal closed prematurely on 26th March, 2022, violating Section 148A(b) of the Act.

2. The Petitioner relies on a previous decision of the Court in Shri Sai Co-operative Thrift and Credit Society Ltd Versus ITO, emphasizing that a minimum of seven days must be provided for the Assessee to reply to the show cause notice under Section 148A(b) of the Act. In response, the Respondent's counsel expresses no objection if the matter is remanded to the Assessing Officer for a fresh decision in compliance with the law.

3. Consequently, the Court sets aside the impugned order dated 30th March, 2022, issued under Section 148A(d) for the Assessment Year 2018-19. The Assessing Officer is directed to issue a fresh reasoned order after considering the Petitioner's reply, to be submitted within a week. It is clarified that the Court refrains from commenting on the merits of the dispute, leaving the rights and contentions of all parties open for further proceedings.