"Order Without Any Reasons Is No Order in the Eyes of Law": Himachal Pradesh HC Quashes Reassessment Notice [Read Order]
Himachal Pradesh HC quashed a reassessment notice, ruling that orders without reasons are invalid and cannot be passed lightly under Section 148.
Reasssessment - Notice - Taxscan
Reasssessment - Notice - Taxscan
In a recent ruling, the Himachal Pradesh High Court held that an order passed without giving reasons cannot be sustained in law. The court ruled that such an order is not valid and cannot be used to reopen an income tax assessment.
Neena Singh Thakur, the petitioner, filed a writ petition challenging the reassessment proceedings initiated against her under Section 148 of the Income Tax Act, 1961, for the assessment year 2017-18.
The petitioner received a notice under Section 148A(b) from the Income Tax Department which claimed that she had purchased immovable property worth Rs. 1.21 crore and earned interest income of Rs. 35,109 during the financial year 2016-17.
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According to the department, these transactions were not disclosed in her income tax return. She was asked to explain the source of these investments and submit supporting documents.
The petitioner submitted a detailed reply along with relevant documents, including bank statements and a clarification that the actual value of the property was Rs. 1.31 crore, not Rs. 1.21 crore.
The petitioner’s counsel argued that despite her full cooperation and submission of all necessary information, the Assessing Officer passed an order under Section 148A(d) without offering any reason for rejecting her reply. Instead, the officer simply wrote that “at the preliminary stage, the contention of the assessee is not acceptable and the same requires a detailed examination.”
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The Division Bench of Justice Tarlok Singh Chauhan and Justice Sushil Kukreja observed that the Assessing Officer failed to apply his mind to the material on record. The court pointed out that it is not enough to say that a matter needs more examination. The officer is expected to give reasons before moving forward.
The court also stated that the Assessing Officer needs to realise that a notice under Section 148 carries “serious civil or evil consequences”, and such notices cannot be issued lightly. The reasons for issuing them must be clearly recorded in order.
The court quashed the order passed under Section 148A(d) and the reassessment notice under Section 148 of the Income Tax Act. The matter was sent back to the Assessing Officer to decide again strictly under the law.
If the officer still believes that a reassessment notice is needed, he must provide detailed reasons. The court directed that the process be completed by 31 August 2025. The writ petition was allowed.
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