2023 (6) TMI 824 - HC - Income Tax

Reopening of assessment u/s 148A - service upon the AO - petitioner failed to file any objections to the notice even though the opportunity and time of two weeks were granted to the petitioner to file objections - HELD THAT - The period from the date of the impugned order dated 29/07/2022 till today will stand excluded or in any case; the timeline will stand proportionately extended. We clarify that we have not examined the merits of the matter because the same has to be examined by the AO. Needless to add, all contentions of all parties, including the defences available to the Assessee u/s 149 of the Income Tax Act and all rights and contentions that may be available to the Assessee and the Revenue in law. The rule is accordingly made absolute in terms of prayer clause b of this petition which reads as follows with liberty to the AO to make fresh order after considering petitioner s objections/response.

Summary

Issues involved:
The issues involved in the judgment include service of notice under Section 148 A(b) of the Income Tax Act, consideration of objections filed by the petitioner, the necessity of indicating response format in the notice, and the timeline for disposing of notices.

Service of Notice under Section 148 A(b):
The petitioner received a notice dated 20/05/2022 under Section 148 A(b) of the Income Tax Act, requiring a response within two weeks. The notice was served via email, and the petitioner filed a physical response on 31/05/2022. However, the Assessing Officer disposed of the notice on 29/07/2022 without considering the filed objections.

Consideration of Objections:
The order dated 29/07/2022 was made without considering the objections filed by the petitioner on 31/05/2022. In light of this, the High Court set aside the impugned order and directed the respondents to consider the petitioner's objections and issue a fresh order in accordance with the law.

Necessity of Indicating Response Format:
The judgment did not delve into the controversy of whether the response should have been filed in physical form or through email. Instead, the focus was on ensuring justice by setting aside the previous order and allowing the Assessing Officer to consider the objections filed by the petitioner.

Timeline for Disposing of Notices:
The Court clarified that the timeline for disposing of such notices should be extended proportionately from the date of the impugned order to prevent prejudice to the revenue. The period from the date of the impugned order till the present was excluded, or the timeline was proportionately extended.

This judgment emphasizes the importance of considering objections filed by the petitioner, ensuring procedural fairness, and maintaining timelines for the disposal of notices under the Income Tax Act. The High Court's decision to set aside the previous order and allow for a fresh consideration of objections highlights the commitment to upholding justice and procedural correctness in tax matters.