The Delhi Bench High Court has set aside the Order passed u/s 148A(d) of the Income Tax Act, 1961 when Assessing Officer (AO) voluntarily accepts the mistakes in Show Cause Notice (SCN) issued.
Vidisha Singhal challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961 (‘the Act’) dated 29th May, 2022, order passed under Section 148A(d) dated 22nd July, 2022 and impugned notice issued under Section 148 dated 23rd July, 2022.
The Petitioner stated that in the Section 148A(b) notice, transactions worth Rs.50,40,000/- having escaped assessment were attributed to Mr.Dayanand Singh and transaction worth Rs.48,54,000/- was attributed to Lifeline Securities Limited. In the impugned order under Section 148A(d), the entities and the amount have been swapped i.e. Rs.50,40,000/- transaction is now attributed to Lifeline Securities Limited and not to Mr.Dayanand Singh.
The Assessing Officer(AO) admitted that the impugned order passed under Section 148A(d) of the Act is riddled with mistakes and further admitted that in the notice issued under Section 148A(b) of the Act, the details of the transactions allegedly carried out by the petitioner were not correct. He stated that the transactions were clarified by the ITO (Inv),which he had incorporated in the order passed under Section 148A(d) of the Act.
The Court comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora set aside the impugned order passed under Section 148A(d) and the impugned notice issued under Section 148 of the Act. The Assessing Officer is directed to issue an amended notice under Section 148A(b) of the Act along with the incriminating material in its possession to the assessee within two weeks.
While allowing the bWrit petition , the Court given the liberty to the assessee to file a reply to the amended notice within four weeks and the Assessing Officer (AO)was directed to decide the matter afresh within a further period of four weeks in accordance with law.
With the aforesaid directions and liberty, the present writ petition and application stand disposed of. The rights and contentions of all the parties are left open.
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