148A(d) order passed by AO violates Natural Justice Principles: Calcutta HC sets aside Non-Speaking Order, directs to Re-adjudicate [Read Order]

Calcutta High Court (HC), division bench of Justice T. Sivagnanam and Justice Hiranmay Bhattacharya set aside the order issued by the Assessing Officer (AO) under section 148A(d). Further, the bench directed the AO to initiate the fresh proceedings on the same.

The appeal is an intra-court appeal by the writ petitioners directed against the order of the single bench. 

According to the  judgement of the single bench, the writ petition was dismissed by instructing the appellants to produce a case to the assessing officer and justifying their use of two PAN numbers.

Additionally, the Single Bench directed that an order of status quo be passed in accordance with the order passed under Section 148A(d) of the Income Tax Act of 1961 on April 30, 2022, until the representation was resolved. The appellants/writ petitioners have undertaken the present appeal since they are dissatisfied by such an order.

The bench highlighted that the AO will be unable to evaluate the appellants' representation since he has already made an order under Section 148A(d) of the Act dated April 13, 2022, which constitutes a substantial portion of the directive issued by the single bench Judge.

Moreover, the writ petition's directive cannot be carried out until such a decision is overturned and the AO is given the authority to reconsider the situation.

The order issued pursuant to Section 148A(d) of the Income Tax Act is a non-speaking order, the court further stated. The notice subsequently responded to by the appellants in compliance with Section 148A(b) of the Income Tax Act.

Furthermore, in the reply, the assessee has pointed out as to how and under what circumstances two PAN numbers were applied and the fact that one of the PAN numbers was surrendered, was also set out.

The bench remarked that the AO should examine the correctness of the stand taken by the appellants, which according to the appellants, was an inadvertent mistake.

The division bench continued by asserting that because the order was issued in non-speaking, they were inclined to interfere with it, remand the case back to the AO for new review, and keep the directive of the single bench for the appellants to submit a representation.

According to the decision of the Calcutta HC, the order made on April 13, 2022, under Section 148A(d) of the Income Tax Act, is thus reversed, and the matter is remanded and returned to the file of the AO.

Further, the appellants were  directed to submit a representation as directed by the Single Bench and the AO on receipt of the representation shall afford an opportunity of personal hearing and consider the reply dated 28th March, 2022.

Additionally,the representation and pass a fresh order on merits and in accordance with law.

The bench set aside the consequential notice issued under Section 148 of the Income Tax Act.

To Read the full text of the Order CLICK HERE

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