Delhi HC quashes Pre-Consultation Notice u/s 148A(d) of Income Tax Act passed without Considering Detailed Reply of Assessee [Read Order]

A division bench of the Delhi High Court, while considering a writ petition, has quashed a pre-consultation notice issued under section 148A(d) of the Income Tax Act, 1961 stating that the same was passed without considering the detailed reply of the assessee.

A bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora was considering a petition by M/s Rise Projects Private Limited wherein the petitioner contended that the issue of purchase of property had already been assessed by the Assessing Officer during the original scrutiny assessment for the assessment year 2016-17 and the said transactions had been accepted by the respondents vide assessment order dated 19th December 2018. The petitioner further contended that the proceedings initiated under Section 147 of the Income Tax Act are based on a mere change of opinion which is not permissible in law, as there is no fresh tangible material before the respondents to take a contrary view to the one taken during the original scrutiny assessment. According to the petitioner, the impugned order was passed without considering the detailed reply filed by the petitioner.

The department admitted that as the petitioner’s contentions have not been considered while passing the impugned order under Section 148A(d) of the income tax Act, the Assessing Officer has no objection if the present matter is remanded back for fresh consideration.

Allowing the petition, the Court quashed the orders and held that “Keeping in view the aforesaid, the impugned order passed under Section 148A(d) and the notice issued under Section 148A of the income tax Act both dated 15th July, 2022 for the assessment year 2016-17 are set aside and the Assessing Officer is directed to pass a fresh order under Section 148A(d) of the Act in accordance with law within eight weeks. The rights and contentions of all the parties are left open. With the aforesaid directions, the present writ petition and application stand disposed of.”

To Read the full text of the Order CLICK HERE

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