2022 (5) TMI 530 - HC - Income Tax

Reopening of assessment u/s 147 - Validity of order u/s 148A(d) - Petitioner states that despite the Petitioner having moved an application for extension of time and the portal being kept open for the said purpose, the submission filed by the assessee within the extended time was not taken into account by the Respondents - HELD THAT - As stated petitioner has not placed on record either the Show Cause Notice or the correspondence exchanged with the Department. He, however, states that respondents have no objection if the Assessing Officer is directed to consider the reply/representation of the petitioner a copy of which has been placed at page 64 of the paper book. Consequently, the impugned order dated 25th March, 2022 as well as the notice dated 26th March, 2022 are set aside and the Assessing Officer is directed to pass a fresh raeasoned order in accordance with law within six weeks, after considering the reply/representation dated 26th March, 2022 placed at pages 64 and 65 of the paper book along with annexure enclosed therewith. With the aforesaid direction, the present writ petition and application stand disposed of.

Summary

Issues:
Challenge to order under Section 148A(d) of the Income Tax Act, 1961 and notice issued under Section 148 for Assessment Year 2018-19.

Analysis:
The petitioner filed a writ petition challenging the order dated 25th March, 2022 passed by Respondent No.1 under Section 148A(d) of the Income Tax Act, 1961, and the notice dated 26th March, 2022 issued by the Assessing Officer under Section 148 for the Assessment Year 2018-19. The petitioner's senior counsel argued that despite submitting an application for an extension of time and the portal being open for such submissions, the assessee's filing within the extended time was not considered by the Respondents. It was highlighted that under sub-clause (d) of Section 148A, the Assessing Officer is mandated to decide, based on the material available on record, including the assessee's reply, whether issuing a notice under Section 148 is justified, with prior approval of Pr. CIT. The counsel contended that in this case, Respondent No.1 did not take into account the reply/representation made by the assessee and proceeded with a predetermined mindset.

The Court issued notice, and the respondents' counsel accepted it, mentioning that the petitioner did not provide the Show Cause Notice or the correspondence with the Department. However, he acknowledged that the Assessing Officer had no objection to considering the reply/representation of the petitioner, a copy of which was placed at page 64 of the paper book. Consequently, the Court set aside the impugned order dated 25th March, 2022, and the notice dated 26th March, 2022. The Assessing Officer was directed to pass a fresh reasoned order within six weeks, taking into account the reply/representation dated 26th March, 2022, placed at pages 64 and 65 of the paper book along with the enclosed annexure. With this direction, the writ petition and application were disposed of. The Court clarified that it did not comment on the merits of the controversy, leaving the rights and contentions of all parties open for further proceedings.