No Real Time Alert Sent for Notice u/s 148A(b) of I-T Act received on Same Date as Order Passed by Income Tax Dept: Delhi HC directs Readjudication

In a recent ruling, the Delhi High Court directed the Assessing Officer to re-adjudicate the matter as they  failed to send the notice under Section 148A(b) of Income Tax Act, 1961.

The Bench of Justice Rajiv Shakdher and Justice Girish Kathiapala observed that the notice under Section 148A(b) of the Income Tax Act and order under the same provision was sent on the same date which is a violation of principles of natural justice.

The petitioner challenged the order passed under Section 148A(d) of the Income Tax Act, 1961. Also challenged a consequential notice of the same date, issued under Section 148 of the Income Tax Act.

The principal grievance of the petitioner is that no notice was issued to the petitioner under Section 148A(b) of the Income Tax Act.

The counsel of the petitioner stated that the said notice under Section 148A(b) of the Income Tax Act, which is dated 10.03.2023, was received by the petitioner only on the date when the order under Section 148A(d) of the 1961 Act was passed, i.e., 31.03.2023.

Further asserted that no real time alert was issued via email, in terms of Rule 127 of the Income Tax Rules, 1962.

Anuja Pethia, the counsel appeared on behalf of the respondent-department submitted that the best way forward in this case would be to set aside the impugned order with liberty to the Assessing Officer (AO) to carry out the exercise de novo.

The bench observed that the submissions of the counsel of the petitioner was right and has set aside the impugned order and notice issued under Sections 148 and 148A(d) of Income Tax Act respectively.

The Division Bench directed that the petitioner will file a reply to the notice dated 10.03.2023 issued under Section 148A(b) of the Act within three (3) weeks commencing from the date of the judgment.

The Delhi High Court also directed the AO to accord a personal hearing to the authorized representative of the petitioner. For this purpose, a notice shall be issued fixing the date and time of the hearing. Thereafter, he also has to send a speaking order in accordance with law, the bench further instruccted.

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