2022 (7) TMI 961 - HC - Income Tax

Reopening of assessment u/s 147 - notice issued u/s 148A - violation of principle of natural justice - as stated under Section 148A(b) dated 31st March,2022 requiring compliance by 18th April, 2022, had been delivered by the postal authorities to the Petitioner on 25th April, 2022, i.e. on the same date the order under Section 148A(d) was passed - HELD THAT - Mr.Zoheb Hossain, learned standing counsel accepts notice on behalf of the Respondent-Revenue. He states that as the notice issued under Section 148A(b) dated 31st March, 2022 had been received by the Petitioner on 25th April, 2022 i.e. on the same date the order under Section 148A(d) of the Act had been passed, he has no objection if the impugned order and notice dated 25th April, 2022 are set aside. He also states that he would ask the Assessing Officer to examine the fact threadbare, especially, keeping in view the averments made by the Petitioner in its letter dated 27th April, 2022. In view of the aforesaid statements made by Mr.Zoheb Hossain, learned counsel for the Petitioner does not wish to press the present writ petition any further. Accordingly, with consent of the parties, the impugned order issued under Section 148A(d) of the Act dated 25th April, 2022 as well as the notice issued under Section 148 of the Act dated 25th April, 2022 are quashed and the matter is remanded back to the Assessing Officer to decide the matter afresh in accordance with law within eight weeks, after giving an opportunity of hearing to the Petitioner. Moreover, in view of the averments made by the Petitioner in its letter dated 27th April, 2022 as well as Form 15 CA referred to in Section 148A(b) notice, this Court directs the Assessing Officer to apply his/her mind diligently.

Summary

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

Analysis:
The petitioner filed a writ petition challenging a notice dated 31st March, 2022 issued under Section 148A(b) of the Income Tax Act, 1961, and an order dated 25th April, 2022 passed by the Respondent under Section 148A(d) for Assessment Year 2018-19. The petitioner sought direction to the Respondent to provide information regarding taxpayers registered under a specific name and details about forms issued by another entity. The petitioner's counsel argued that the order under Section 148A(d) was passed without providing an opportunity for a hearing, and the notice was delivered after the order, violating the Act. The counsel contended that the allegations in the notice were unfounded as the income in question had been declared for taxation. The Respondent's counsel accepted notice and agreed to set aside the impugned order and notice, requesting a re-examination of the matter by the Assessing Officer. Consequently, the writ petition was not pursued further, and with the consent of both parties, the impugned order and notice were quashed. The matter was remanded to the Assessing Officer for fresh consideration within eight weeks, with instructions to diligently review the petitioner's submissions and relevant documents.

This judgment highlights the importance of procedural fairness and compliance with statutory requirements in tax matters. The court's intervention ensured that the petitioner's rights were upheld, and the Assessing Officer was directed to re-examine the case with due diligence. The decision emphasizes the need for proper opportunity of hearing and factual accuracy in tax proceedings to prevent unjust consequences for taxpayers.