Delhi HC quashes Reassessment Order passed u/s 148A(d) of Income Tax Act on account of failure to hold oral hearing to assessee [Read Order]
Delhi HC quashes Reassessment Order passed u/s 148A(d) of Income Tax Act on account of failure to hold oral hearing to assessee
assessee – Delhi high court – Income Tax – Reassessment Order – taxscan
assessee – Delhi high court – Income Tax – Reassessment Order – taxscan
In a recent case, the Delhi High Court quashed the assessment order passed under Section 148A(d) of the Income Tax Act, 1961, due to the failure to hold an oral hearing for the assessee.
The writ petition was filed by petitioner Deepak Modi, challenging the re-assessment order passed under Section 148A(d) of the Income Tax Act without providing an oral hearing. The reassessment proceedings initiated against the petitioner alleged that he acquired accommodation entries, as recorded in his books of accounts, engaging in bogus transactions with an entity named New Goodwill Traders.
Ruchesh Sinha, the petitioner's counsel, drew attention to the reply and documents submitted, demonstrating that all relevant documents, including purchase bills, E-way Bill, Lorry receipts, and sales invoices from New Goodwill Traders, were presented before the Assessing Officer.
Petitioner's counsel Sinha further argued that the prescribed procedure had not been followed by the Assessing Officer before initiating reassessment proceedings. Additionally, granting a hearing might have clarified some of the doubts raised by the AO.
Shlok Chandra, the respondent's counsel, filed an affidavit stating that no oral hearing was granted to the petitioner before passing the impugned order dated 30.03.2023 under Section 148A(d) of the Income Tax Act.
After analyzing the facts and arguments of both parties, a division bench of Justice Satish Rajiv Shakdher and Justice Girish Kathpalia observed that no oral hearing was granted to the petitioner before passing the reassessment order.
Therefore, the division bench quashed the assessment order under Section 148A(d) of the Income Tax Act, citing the failure to hold an oral hearing for the assessee, and directed the AO to issue a fresh order.
To Read the full text of the Order CLICK HERE
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