2022 (12) TMI 82 - HC - Income Tax

Reopening of assessment u/s 147 - non considering objection to the notice u/s 148A(b) - violation of principle of natural justice by not taking into consideration the petitioners objection to the notice u/s 148A(b) which was filed within the time asked for by AO - HELD THAT - Considering the facts and circumstances of this case as appears from record and in the interest of justice and taking into consideration the principle of observation of natural justice the aforesaid impugned order u/s 148A(d) is set aside and the matter is remanded back to the assessing officer to pass a fresh speaking order in accordance with law after giving an opportunity of hearing to the petitioner or its authorized representatives within a period of eight weeks from the date of communication of this order.

Summary

Issues: Challenge to impugned order under Section 148A(d) of the Income Tax Act, 1961 for assessment year 2018-19 based on violation of natural justice by not considering petitioner's objection within the stipulated time.

Analysis:
The petitioner challenged the impugned order dated 30th March, 2022 under Section 148A(d) of the Income Tax Act, 1961 for the assessment year 2018-19, alleging a violation of the principle of natural justice. The petitioner contended that their objection to the notice under Section 148A(b) of the Act was not considered, despite being filed within the time specified by the Assessing Officer. The petitioner provided evidence that the objection was uploaded on the official website of the income tax department on 28th March, 2022, within the deadline. However, the income tax authorities argued that the objection was received on 29th March, 2022, possibly due to a technical issue in the department's system.

The Court acknowledged the discrepancy in the dates and emphasized that if the technical fault lay with the department's system, the petitioner should not be penalized unless specific evidence was presented to prove that the objection was uploaded after the allotted time. After considering the facts and circumstances of the case, the Court concluded that in the interest of justice and to uphold the principles of natural justice, the impugned order dated 30th March, 2022 under Section 148A(d) should be set aside. The matter was remanded back to the assessing officer to issue a fresh order in compliance with the law, providing an opportunity for the petitioner or their authorized representatives to be heard within eight weeks from the date of communication of the order.

In light of the above observations and directions, the writ petition (WPA 23501 of 2022) was disposed of by the High Court.