Income Tax Assessment Order wrongly recorded Non-filing of Reply by Assessee: Madras HC Orders Fresh Adjudication [Read Order]

The Madras High Court has recently directed the income tax department to adjudicate the re-assessment initiated under section 148A of the Income Tax Act, 1961since the order wrongly mentioned that the assessee has not responded to the notice.

The Petitioner, V.M.Vijayakumar has challenged the impugned order passed under Section 148A (d) of the Income Act, 1961 the Petitioner was issued with a notice under Section 148A of the Income Act, 1961 on 20.03.2022 and that the Petitioner has also replied to the same on 25.03.2022, which has also been acknowledged. However, the impugned order has wrongly recorded that the Petitioner has not responded.

After considering arguments from both sides, Justice C Saravanan observed that the copy of the e-Proceedings/acknowledgment indicates that the Petitioner had indeed filed a reply to the notice issued under Section 148A of the Income Act, 1961, on 25.03.2022.

“Considering the same, I am inclined to come to a conclusion that the observation in the impugned order that the Petitioner has not responded to the notice is not correct. Therefore, the impugned proceedings dated 31.03.2022 passed by the Respondent in PAN:AAAHV0166N in DIN and Notice No.ITBA/AST/F/148A/2021-22/1042382229(1) under clause(d) of Section 148A of the Income Tax Act, 1961 is hereby quashed and the case is remitted back to the Respondent to pass appropriate order within a period of four weeks from the date of receipt of a copy of this order. No costs. Consequently, the connected Miscellaneous Petitions are closed,” the Court said.

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