2022 (9) TMI 1394 - HC - Income Tax

Reopening of assessment u/s 147 - validity of order passed u/s 148A(d) - Petitioner had filed detailed submission on three occasions which were not considered by the Respondent before passing the impugned order - HELD THAT - A perusal of the paper book reveals that the Petitioner s responses dated 16th July, 2022 and 18th July, 2022 have not been considered by the Assessing Officer while passing the impugned order under Section 148A(d) of the Act. This Court in Fena Pvt. Ltd. 2022 (5) TMI 892 - DELHI HIGH COURT quashed the order passed under Section 148A(d) of the Act in similar circumstances i.e. where Assessing Officer had not taken into consideration the replies along with the documents/evidences filed by the assessee before passing the order under Section 148A(d) of the Act. Consequently, the impugned order passed u/s 148A(d) of the Act as well as the notice issued under Section 148 of the Act, both dated 21st July, 2022 are set aside and the matter is remanded back to the AO for a fresh decision to be given in accordance with law within eight weeks.

Summary

Issues:
Challenging order under Section 148A(d) and notice under Section 148 of the Income Tax Act, 1961 for assessment year 2015-16.

Analysis:
The Petitioner challenged the order dated 21st July, 2022, under Section 148A(d) and the notice issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2015-16. The Petitioner contended that the order wrongly mentioned a claim for LTCG of Rs.56,04,000/-, which was not made in the ITR filed for the relevant assessment year. Additionally, it was argued that the Petitioner had submitted detailed responses on three occasions, but these were not considered before passing the impugned order. The submissions were made on 22nd June, 2022, 16th July, 2022, and 18th July, 2022.

The Court noted that the responses dated 16th July, 2022, and 18th July, 2022, submitted by the Petitioner were not taken into account by the Assessing Officer while passing the impugned order under Section 148A(d) of the Act. Referring to a previous case, the Court highlighted that in similar circumstances where the Assessing Officer had not considered the replies and documents filed by the assessee, the order under Section 148A(d) was quashed.

Consequently, the impugned order under Section 148A(d) of the Act and the notice under Section 148 of the Act, both dated 21st July, 2022, were set aside. The matter was remanded back to the Assessing Officer for a fresh decision within eight weeks. The Assessing Officer was given the liberty to issue a subsequent notice enclosing all relevant material and information, after redacting third-party information, within two weeks. In such a scenario, the Petitioner could file a reply within three weeks.

With the above directions, the present writ petition along with pending applications were disposed of. It was clarified that the rights and contentions of the parties were left open for further proceedings.