Delhi HC quashes Order passed u/s 148A(d) of Income Tax Act for Non-consideration of Reply [Read Order]

The Delhi High Court quashed an order passed under Section 148A(d) of the Income Tax Act, 1961 for non-consideration of reply.

By the writ petition, the petitioner, Ramrati sought to challenge the order dated 25.03.2023 passed under Section 148A(d) of the Income Tax Act, 1961 and consequent notice of even date, i.e, 25.03.2023, issued under Section 148 of the Income Tax Act.

A perusal of the notice dated 24.02.2023 issued under Section 148A(b) of the Income Tax Act disclosed that the allegations made qua the petitioner is that she sold the subject property and received consideration against the sale, which was not disclosed. According to the respondents/revenue, the consideration received by the petitioner was Rs.1,52,50,000/-. The aforementioned notice also disclosed that this information was obtained by the respondent/revenue via the Non Filing Monitoring (NMS).

The petitioner claimed that a reply dated 14.03.2023 was uploaded on the designated portal on 15.03.2023. Although the petitioner has failed to place on record any material to back its claims, the counsel for the respondent said that he has obtained instructions that the reply of the petitioner was available on the designated portal, on the date set forth hereinabove.

A perusal of the impugned order dated 24.03.2023 passed under Section 148A(d) of the Income Tax Act shows that the Assessing Officer (AO) has proceeded on the basis that no response was filed by the petitioner.

A Division Judge Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia observed that “Therefore, in our opinion, the principles of natural justice have been violated as submitted by Shurbhi Chandra, advocate, who appears on behalf of the petitioner. Thus, according to us, the best way forward would be to set aside the impugned order and notice.”

“Liberty is, however, given to the AO to pass a fresh order, after taking into account the reply filed by the petitioner. Furthermore, the AO will also accord a personal hearing to the petitioner and/or her authorised representative. For this purpose, the AO will issue a notice to the petitioner” the Court noted.

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