2022 (10) TMI 2 - HC - Income Tax

Reopening of assessment u/s 147 - validity of order passed u/s 148A(d) - violation of principles of natural justice or in contrary to any provision of law or is a non-speaking order or there is any procedural irregularity in passing the aforesaid impugned order - HELD THAT - AO has passed a detailed order after issuing formal notice u/s 148A(b) of the Act. Thereafter petitioner was given opportunity to file response to the same. Petitioner had filed response to the same which was taken into consideration by the respondent assessing officer but petitioner is not satisfied with the reasoning given and conclusion arrived at by the respondent assessing officer in rejecting the response of the petitioner to the notice u/s 148A(b) of the Act. In view of discussion made above and in addition that mere passing an order under Section 148A(d) of the Act is not an assessment order or demand itself and petitioner will still have ample opportunity and scope in the proceeding after issuance of notice under Section 148 to make out a case of dropping of Section 147 proceeding of the Act. We are not inclined to entertain this writ petition and accordingly the writ petition as dismissed.

Summary

Issues:
Challenge to impugned order dated 28th July, 2022 under Section 148(d) of the Income Tax Act, 1961 for assessment year 2014-15.

Analysis:
The petitioner challenged the impugned order dated 28th July, 2022, under Section 148(d) of the Income Tax Act, 1961, relating to the assessment year 2014-15. The court examined the order and found that it did not violate the principles of natural justice, contravene any provision of law, or contain procedural irregularities. The assessing officer had issued a formal notice under Section 148A(b) of the Act, following which the petitioner submitted a response. The court noted that the assessing officer had considered the petitioner's response but the petitioner was dissatisfied with the reasoning and conclusion of the assessing officer in rejecting the response.

The court emphasized that an order under Section 148A(d) of the Act is not an assessment order or demand itself. The petitioner still had the opportunity and scope in the proceeding after the issuance of the notice under Section 148 to argue for dropping the Section 147 proceeding of the Act. Based on the factual and legal position, the court declined to entertain the writ petition and dismissed it. The court clarified that the passing of the order under Section 148A(d) did not foreclose the petitioner's ability to present a case for dropping the Section 147 proceeding during the subsequent stages of the proceedings.

Therefore, the court held that the writ petition challenging the impugned order under Section 148(d) of the Income Tax Act, 1961 for the assessment year 2014-15 was dismissed, as it did not find any grounds to support the petitioner's contentions regarding the order passed by the assessing officer.