Facts of the Case

The present writ petition pertains to Assessment Year 2019–20. The petitioner contended that it did not receive the notice dated 04.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961. It was specifically asserted that no real-time alert or proper communication was received regarding such notice.

Subsequently, the petitioner became aware of the proceedings only when the order dated 22.03.2023 passed under Section 148A(d) was shared by an employee of a group company. Thereafter, the petitioner accessed the e-filing portal and downloaded both the notice and the order.

 Issues Involved

  1. Whether non-receipt of notice under Section 148A(b) violates principles of natural justice.
  2. Whether an order under Section 148A(d) can be sustained without granting proper opportunity to respond.
  3. Whether reassessment proceedings under Section 148 are valid in absence of effective service of notice.

 Petitioner’s Arguments

  • The petitioner argued that no notice under Section 148A(b) was received, thereby depriving it of the statutory opportunity to respond.
  • It was emphasized that no real-time alert or communication was provided by the department.
  • The petitioner contended that the subsequent order under Section 148A(d) was passed without granting an opportunity of being heard, thus violating principles of natural justice.

 Respondent’s Arguments

  • The Revenue, through its counsel, stated that a fresh opportunity could be granted to the petitioner to respond to the notice under Section 148A(b).
  • The respondent did not insist on filing a counter-affidavit and agreed for disposal at this stage.

 Court’s Findings / Order

  • The Court observed that the petitioner had not been granted a proper opportunity to respond to the notice under Section 148A(b).
  • With the consent of the respondent, the Court held that a fresh opportunity should be provided.

Important Clarification

  • The Court did not adjudicate on merits of the reassessment.
  • Relief was granted strictly on the ground of violation of natural justice.
  • The Revenue retains full authority to proceed afresh in accordance with law.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60815052023CW62942023_122950.pdf

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