The Calcutta High Court (HC) quashed the order under section 148A(d) of the Income Tax Act,1961 passed with non-application of mind.
Dobby Media Pvt. Ltd., the petitioner has challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961, dated 29th July 2022 on the ground that the aforesaid impugned order is perverse and in total non-application of mind by recording that no response was given to the letter in question issued by the Assessing Officer nor any supporting document was attached while the petitioner had filed the response along with supporting documents.
As per the above-said section, the Law makes it necessary to consider the reply and submissions filed by the assessee and discuss the same in the body of the order. Non-consideration of replies filed by the assessee under section 148A(c) of the Income Tax Act turned out to be the recent issue. Based on material available on record and based on the reply of the assessee AO has to decide whether or not it is a fit case to issue a notice under section 148, by passing a speaking order under section 148A(d), with the prior approval of the specified authority.
It was evident that the aforesaid impugned order under Section 148A(d) of the Income Tax Act, 1961 is in total non-application of mind and on this ground alone, the aforesaid impugned order is not sustainable and is liable to be quashed.
A single-member bench comprising Justice Md. Nizamuddin viewed that quashing the aforesaid impugned order under Section 148A(d) of the Act and all subsequent proceedings, will not be a bar on the part of the Assessing Officer to pass a fresh order under Section 148A(d) of the Act after considering the objection/ response of the petitioner dated 15th June 2022 by the law.
It was held that it would be by passing a reasoned and speaking order after giving an opportunity of hearing to the petitioner or his authorised representatives, within a period of eight weeks from the date of communication of the order.
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