Order passed u/s 148A(d) of Income Tax Act without Considering Response of Assessee: Delhi HC sets aside Order [Read Order]

In a recent case, the Delhi High Court set aside the order since the order passed under section 148A(d) of the Income Tax Act,1961 without considering the response of the assessee is not valid.

Mr T M Shivakumar, Advocate appeared for the petitioner and Mr Vipul Agarwal, Sr Standing Counsel appeared for the respondent.

The principal allegation against the petitioner, Jagriti Yadav is that he made cash deposits amounting to Rs.78,30,015/-, which were not accounted for. It was stated by the petitioner that the reassessment proceedings were triggered against him based on the wrong premise that the petitioner is a  “non-filer”. The petitioner asserts that the aforementioned cash deposit was accounted for in the return filed for AY 2016-17. 

The Assessing Officer (AO) has referred to a PAN which had already been surrendered. It was contended that these and other defences, on merits have not been considered while passing the impugned order dated 23.03.2023 under Section 148A(d) of the Income Tax  Act.  

The petitioner further claimed that a response dated 22.03.2023 was also filed, however, the same was received by the AO after the impugned order had been passed. 

It was clear that, at least, one of the two replies was available with the AO before the passing of the impugned order.  

In light of the facts, the division bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia set aside the order dated 23.03.2023 passed under Section 148A(d) of the Income Tax  Act, with liberty to the AO to pass a fresh order, after factoring in the response(s) filed by the petitioner. It is ordered accordingly.  

To Read the full text of the Order CLICK HERE

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