2022 (5) TMI 119 - HC - Income Tax

Reopening of assessment u/s 147 - request for extension of time made by the Petitioner - Petitioner received notice under Section 148A(b) which directed the Petitioner to file its response by 17th March, 2022 - HELD THAT - This Court is of the view that since the Petitioner had sought fifteen days additional time to respond, it would mean fifteen days from 17th March, 2022. Consequently, the impugned order dated 30th March, 2022 as well as consequential notice dated 30th March, 2022 issued under Section 148 of the Act are set aside and the matter is remanded back to the Assessing Officer to consider and decide the petitioner s objections dated 29th March, 2022 in accordance with law within eight weeks. With the aforesaid the present writ petition and application stand disposed of. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.

Summary

Issues involved:
Challenge to notice under Section 148 of the Income Tax Act, 1961; Request for extension of time to respond to the notice; Consideration of petitioner's objections by the Assessing Officer.

Analysis:
The petitioner filed a writ petition challenging a notice dated 30th March, 2022 issued under Section 148 of the Income Tax Act, 1961 and sought a direction to restrain the respondent from proceeding with the notice during the pendency of the petition. The petitioner had received a notice on 11th March, 2022 under Section 148A(b) directing a response by 17th March, 2022. The petitioner requested an additional fifteen days to submit its reply, which was filed on 29th March, 2022. However, in the impugned order dated 30th March, 2022, the Revenue erroneously noted that no reply had been filed by the petitioner.

The court noted that the main issue revolved around the request for an extension of time made by the petitioner in a letter dated 17th March, 2022, wherein the petitioner had requested fifteen days to respond to the notice. The court interpreted this request to mean fifteen days from 17th March, 2022. Consequently, the impugned order and the consequential notice issued on 30th March, 2022 were set aside. The matter was remanded back to the Assessing Officer to consider and decide the petitioner's objections dated 29th March, 2022 within eight weeks in accordance with the law.

The court clarified that the decision did not comment on the merits of the controversy, and the rights and contentions of all parties were left open. With this, the writ petition and application were disposed of, providing relief to the petitioner regarding the erroneous consideration of their response and ensuring proper assessment of their objections by the Assessing Officer within the specified timeline.