Non-Consideration of Reply Filed by Petitioner by AO: Delhi HC quashes Income Tax Notice [Read Order]

The Delhi High Court quashed an income tax notice on non- consideration of the reply filed by the petitioner, by the Assessing Officer (AO).

The petitioner in the present matter is Jagannath Haldar. The substantial prayer made in the writ petition is to issue writ, order or directions in the nature of certiorari, quashing and setting aside the impugned Director Identification Number (DIN) and passed under Section 148A(d) of the Income Tax Act 1961.

Another substantial prayer in relation to the writ petition is to issue writ in the nature of prohibition commanding Respondents to forbear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the impugned DIN and passed under Section 148A(d) of the Income Tax Act 1961 and/or in any proceedings initiated thereunder for the Assessment Year 2016-17.

Pankhuri Shrivastava, counsel for the petitioner argued, that there has been a breach of principles of natural justice, inasmuch as the petitioner’s reply was not taken into account by the Assessing Officer (AO) while passing the order under Section 148A(d) of the Income Tax Act, 1961. In the course of hearing, counsel for the petitioner placed before the Court, a hard copy of the e-mail dated 14.03.2023.

Prashant Meherchandani, senior standing counsel who appeared on behalf of the respondent/revenue submitted that, perhaps, the best way forward would be to remand the matter.

A Division Bench of the Delhi High Court comprising. Justice Rajiv Shakdher and Justice Girish Kathpalia observed that “Accordingly, the impugned order passed under Section 148A(d) of the Income Tax Act is set aside. Liberty is, however, given to the AO to pass a fresh order, after according a personal hearing to the petitioner and/or his authorised representative. The AO will also take into account the reply filed by the petitioner. Needless to add, the AO will pass a speaking order; a copy of which will be furnished to the petitioner.”

To Read the full text of the Order CLICK HERE

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