Facts of the Case

The present writ petition concerns Assessment Year (AY) 2019–20, wherein the petitioner challenged the show-cause notice dated 31.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961, along with the order dated 17.04.2023 passed under Section 148A(d) and the consequential notice issued under Section 148 of the Act.

The petitioner contended that although time was granted to file a response to the notice by 10.04.2023, he attempted to upload the necessary documents within the stipulated time. However, the attempt failed due to the closure of the designated income tax portal.

Despite this, the Assessing Officer proceeded to pass the impugned order on the ground that no response had been filed by the petitioner.

Issues Involved

  1. Whether reassessment proceedings under Sections 148A(b), 148A(d), and 148 are valid when the assessee was unable to respond due to technical issues on the portal.
  2. Whether failure of the Assessing Officer to consider the petitioner’s attempt to respond amounts to violation of principles of natural justice.
  3. Whether such reassessment orders are liable to be set aside and remanded for fresh consideration.

Pettioner’s Arguments

  • The petitioner submitted that he attempted to upload the response within the prescribed time, but could not do so due to the portal being closed.
  • Evidence of grievance regarding portal closure was placed on record.
  • It was argued that the Assessing Officer failed to consider this fact and erroneously assumed non-compliance.
  • The impugned order was therefore arbitrary and in breach of natural justice.

Rspondent’s Arguments

  • The Revenue contended that no response was received from the petitioner within the stipulated time.
  • The Assessing Officer proceeded based on available records and passed the order under Section 148A(d).
  • The respondent relied on procedural compliance and did not dispute proceeding without filing a counter affidavit.

Court Order / Findings

  • The Assessing Officer failed to take cognizance of the petitioner’s attempt to file a response.
  • The fact that the portal was closed and prevented compliance was not considered.
  • Proceeding on the assumption of “no response” was factually incorrect.
  • Setting aside the impugned order dated 17.04.2023 and related notices
  • Directing the Assessing Officer to conduct a de novo proceeding

Court Directions

  • The petitioner was granted two weeks’ time to file a response.
  • The response must be filed both on the portal and before the Jurisdictional Assessing Officer (JAO).
  • The Assessing Officer shall:
    • Provide personal hearing
    • Pass a speaking order after considering submissions

Important Clarification

  • Technical glitches such as portal closure cannot prejudice the rights of the assessee.
  • Authorities must ensure fair opportunity of hearing before passing reassessment orders.
  • Mechanical assumption of “non-response” without verification is impermissible.

Sections Involved

  • Section 148 – Income escaping assessment
  • Section 148A(b) – Show cause notice before reassessment
  • Section 148A(d) – Order for initiating reassessment 

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60819052023CW67612023_145644.pdf

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