2022 (10) TMI 854 - HC - Income Tax

Reopening of assessment - validity of order passed u/s 148(A)(d) - as alleged that no reply had been furnished by the assessee pursuant to the notice issued under section 148A(b) - HELD THAT - From the record, we do notice that there is acknowledgment of the fact that four documents were uploaded on the relevant portal on 6th April 2022, in regard to which no reference at all, had been made by the Assessing Officer in its order dated 16th April 2022. Without speculating as to what would be the result, if the AO had, in fact, considered the documents so uploaded, we are of the view that the documents in question ought to have been considered and its effect determined on the proceedings in question, which does not appear to have been done in the present case by the AO. We set aside the order dated 16th April 2022 passed under section 148A(d) as also notice under section 148 of the Act, dated 16th April 2022, and remand the matter to the AO for considering afresh the entire issue in the light of the documents submitted on 6th April 2022. Any further explanation which the petitioner might wish to render, may also be submitted within a period of two weeks. It would be open to the Assessing Officer then to pass the appropriate orders in accordance with law.

Summary

Issues:
Challenge to order under section 148(A)(d) of the Income Tax Act, 1961 and notice dated 16th April 2022 for assessment year 2018-19.

Analysis:
The petitioner contested an order passed under section 148(A)(d) of the Income Tax Act, 1961, along with a notice issued under section 148 for the assessment year 2018-19. The Assessing Officer had initially issued a show cause notice under section 148(A)(b) inquiring about cash accepted against the sale of property that had escaped assessment. In response, the petitioner uploaded relevant documents, including the Sale Deed and bank statement, showing that the amount in question was received through banking channels. Despite this, the Assessing Officer proceeded to pass the order under section 148(A)(d) alleging no reply was furnished, which the petitioner disputed, claiming the documents were self-explanatory and should have been considered. The High Court noted the documents were uploaded on the portal but not referenced in the Assessing Officer's order. The Court held that the documents should have been considered, and their impact determined, before passing the impugned order. Consequently, the Court set aside the order and notice dated 16th April 2022, remanding the matter to the Assessing Officer for a fresh consideration in light of the submitted documents. The petitioner was granted two weeks to provide any further explanation, with the Assessing Officer directed to pass appropriate orders in accordance with the law. The Writ Petition was disposed of accordingly.