Mistakes in Pre-Consultation Notice u/s 148A(b) and Order: Delhi HC Asks AO to Issue Amended Notice [Read Order]

While considering a writ petition, a division bench of the Delhi High Court has asked the Assessing Officer to amend the pre-consultation notice under section 148A(b) of the Income Tax Act on ground of mistakes.

The assessee, Vidisha Singhal approached the Court stating thatin 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. It was argued that 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 presented in Court and admitted that the impugned order passed under Section 148A(d) of the Act is riddled with mistakes. He 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 further stated that the transactions were clarified by the ITO (Inv), Unit-7, Delhi in its e-mail dated 14th July, 2022, which he had incorporated in the order passed under Section 148A(d) of the Act.

After hearing arguments from both sides, Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that “Keeping in view the aforesaid statements, the impugned order passed under Section 148A(d) and the impugned notice issued under Section 148 of the Act are set aside and 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. The assessee is given liberty to file a reply to the amended notice within fourweeks. The Assessing Officer is, thereafter, directed to decide the matter afresh within a further period of four weeks in accordance with law.”

To Read the full text of the Order CLICK HERE

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VIDISHA SINGHAL vs INCOME TAX OFFICER WARD 29(1) DELHI & ORS , 2022 TAXSCAN (HC) 896 , Dr.Rakesh Gupta, Mr.Somil Agarwal and Mr.Anshul Mittal , Mr.Abhishek Maratha,