2024 (10) TMI 1278 - HC - Income Tax

Reopening of assessment u/s 147/148A - inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 148A(b) notice - HELD THAT - Petitioner has not submitted reply / response along with documents to Section 148A(b) notice. In view of the specific assertion on the part of the petitioner that if one more opportunity is granted, petitioner would submit reply along with documents, deem it just and appropriate to set aside the impugned order passed u/s 148A(d) and subsequent notice / orders, etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notice and to proceed further in accordance with law.

Summary

Issues:
Challenge to notices and orders under Sections 148A(b), 148A(d), 148, 147 r.w.s. 144, 271AAC(1), and 272A(1)(d) of the Income Tax Act, 1961 for the assessment year 2018-19.

Analysis:
The petitioner sought various reliefs through the writ petition, including quashing of notices and orders issued under different sections of the Income Tax Act for the assessment year 2018-19. The petitioner contended that the notice under Section 148A(b) was not served upon them due to cessation of business in 2014, and they were unaware of subsequent notices, preventing them from responding with documents. The petitioner requested an opportunity to provide a reply if the impugned orders were set aside. The respondents opposed the petition, claiming no merit in the petitioner's arguments.

Upon examination, the court noted the undisputed fact that the petitioner had not responded to the Section 148A(b) notice with documents. Considering the petitioner's willingness to submit a reply if given another chance, the court deemed it just to set aside the impugned order under Section 148A(d) and subsequent notices, directing a fresh reconsideration by the respondent from the stage of replying to the initial notice in accordance with the law.

In the final order, the court allowed the petition, setting aside all impugned notices and orders. The matter was remitted back to the respondent for reconsideration afresh from the stage of responding to the initial notice. The petitioner was directed to appear before the respondent without further notice and given the liberty to file a reply with documents, after which the respondent was to provide a reasonable opportunity for further proceedings in compliance with the law.