2024 (7) TMI 1189 - HC - Income Tax

Validity of reopening of assessment - notice issued u/s 148 challenged on the ground that the same has been issued by JAO although the same was required to be issued in a faceless manner in terms of the provisions contained u/s 151A - HELD THAT - Petitioner had sought for an opportunity of personal hearing and despite making such request, the respondents had not afforded the same and having regard to the fact that a lesser period was given to the petitioner to respond to the show cause notice, the mater should be remanded back to the jurisdictional assessing officer for a decision afresh. We, set aside the order passed by the jurisdictional assessing officer dated 30th March 2024 passed u/s 148A(d), for the assessment year 2017-18. The petitioner shall be at liberty to file its additional response to the aforesaid show cause, within a period of 10 days from date. If the petitioner files its additional response or in absence thereto, the jurisdictional assessing officer upon affording opportunity of hearing to the petitioner, shall dispose of such proceeding in accordance with law by passing a reasoned order, within 8 weeks from the date of communication of this order. Notice issued u/s 148 of the said Act dated 30th March 2024 for the assessment year 2017-18 stands set aside. Having regard to the above, it is not necessary at this stage to go into the issue of competence of the jurisdictional assessing officer to issue a notice u/s 148 of the said Act.

Summary

Issues:
Challenging show cause notice and adjudication order under Section 148A(b) of the Income Tax Act, 1961 for the assessment year 2017-18, issuance of notice under Section 148 of the Act by the jurisdictional assessing officer instead of faceless manner as required under Section 151A.

Analysis:
The petitioner filed a writ petition challenging the show cause notice and adjudication order under Section 148A(b) of the Income Tax Act, 1961, dated 15th March 2024, for the assessment year 2017-18. The petitioner also contested the notice issued under Section 148 of the Act, arguing that it should have been issued in a faceless manner as per Section 151A of the Act. The petitioner's advocate highlighted that the notice under Section 148A(b) granted only 5 days instead of the required 7 clear days for response. Additionally, despite the petitioner's request for a personal hearing, no such opportunity was provided by the jurisdictional assessing officer.

The respondents' advocate acknowledged that the petitioner had responded to the show cause notice but admitted that no personal hearing was granted despite the petitioner's request. The Court noted the discrepancies in the time given for response and the lack of a personal hearing. Consequently, the Court decided to remand the matter back to the jurisdictional assessing officer for a fresh decision. The order passed under Section 148A(d) of the Act for the assessment year 2017-18 was set aside, allowing the petitioner to file an additional response within 10 days. The jurisdictional assessing officer was directed to dispose of the matter within 8 weeks after affording the petitioner an opportunity of hearing.

The Court further set aside the notice issued under Section 148 of the Act for the assessment year 2017-18. It was deemed unnecessary at that stage to delve into the competence of the jurisdictional assessing officer to issue such a notice. The writ petition was disposed of with the above observations and directions, emphasizing that all parties should act based on the server copy of the order downloaded from the Court's official website.