9911796707
TMI Blog2022 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 148A(d) of the Income Tax Act, 1961. The learned Single Judge was of the view that the appellant did not file their objection to the notice issued under Section 148A(b) of the Act within the time permitted and, therefore, the Court was not inclined to interfere with the order dated 23rd March, 2022. The correctness of the order passed in the writ petition is challenged before us. We have heard Mr. Pratyush Jhunjhunwala, learned Advocate appearing for the appellant and Mr. Soumen Bhattacharyya, learned standing Counsel for the respondent. At the very outset we need to point that the assessing officer, in the instant case, Sri Niladri Kumar Ghosh, ITO, Ward 44(1), Kolkata acted in utmost haste for reasons best known to him. We suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Department was closed on account of a public holiday. Therefore, the interpretation given by the ITO is a thoroughly narrow interpretation and a perverse outlook. It was argued on behalf of the respondent that had the assessee made a request for extension of time as provided in clause (b) of Section 148A, then in all probabilities, there could have been a chance for grant of extension of time. However, the assessee did not make any such request. This argument also has to fail for the simple reason that it is on record that the reply/objection had been filed online on 21st March, 2022 and if that is the factual position, it is deemed that the assessee had sought for extension of time. It was further argued on behalf of the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in GKN Driveshafts (India) Ltd. vs. ITO, reported in (2003) 259 ITR 19 (SC) before any exercise of jurisdiction to initiate reassessment proceedings under Section 148 of the Act. Further, the Court held that the term "information" as contained in Explanation-1 to Section 148 cannot be lightly resorted so as to reopen assessment and this information cannot be a ground to give unbridled powers to the revenue. Further the Court took into consideration the order which was impugned therein and found the same to be cryptic. The next aspect which the Court considered was whether the petitioner therein was denied effective opportunity to file reply and it was held that the petitioner therein had a right to get adequate time in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of reassessment cases post 1st April, 2021, the orders under Section 148A(d) of the Act use a template/general reason to reject the defence of the assessee on merits, namely, "found devoid of any merit because the assessee company has failed to produce the relevant documents in respect of transactions mentioned in show case notice.... it is established that the assessee has no proper explanation..." Consequently, this Court is of the opinion that a progressive as well as futuristic scheme of re-assessment whose intent is laudatory has in its implementation not only been rendered nugatory but has also had an unintended opposite result." As mentioned above, the facts of the case on hand are identical to that of the facts in Divya Capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order dated 23rd March, 2022 passed under Section 148A(d) and the notice dated 11th March 2022 are quashed and the matter is remanded to the assessing officer to take note of the reply given by the assessee dated 21st March, 2022 and consider the same. According to the learned Advocate for the appellant, the assessee sought for certain information. Hence, this reply should be considered in a meaningful manner and action be initiated in accordance with the law. There will be an order directing the respondent/department to pay costs of Rs. 15,000/- to the West Bengal State Legal Services Authority within three days from the date of which the server copy is made available and the department is granted liberty to recover the said amount fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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