Facts of the Case

The present writ petition pertains to Assessment Year 2019-20. The petitioner challenged the notice dated 20.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961, as well as the order dated 30.03.2023 passed under Section 148A(d).

The petitioner had filed a reply to the notice issued under Section 148A(b), which was uploaded on the designated portal on 28.03.2023. However, the Assessing Officer proceeded to pass the order under Section 148A(d) on the assumption that no reply had been filed by the petitioner.

Issues Involved

  1. Whether the order passed under Section 148A(d) is valid when the reply filed by the assessee under Section 148A(b) was not considered.
  2. Whether reassessment proceedings can be sustained when based on incorrect factual assumptions.

Petitioner’s Arguments

  • The impugned order under Section 148A(d) is flawed as it fails to consider the reply filed by the petitioner.
  • The Assessing Officer incorrectly recorded that no response had been submitted, which is factually inaccurate.
  • The reply was duly filed and uploaded on the portal prior to passing the order.

Respondent’s Arguments

  • The respondent chose not to file a counter-affidavit and argued the matter based on the available record.
  • The respondent did not dispute the procedural direction proposed by the Court.

Court’s Findings / Order

  • The Court observed that the Assessing Officer proceeded on an incorrect factual basis by stating that no reply was filed by the petitioner.
  • It was noted that the petitioner had indeed submitted a reply, which was not considered.
  • The Court held this to be a material flaw in the decision-making process.

Order:

  • The impugned order dated 30.03.2023 under Section 148A(d) was set aside.
  • Liberty was granted to the Assessing Officer to pass a fresh order after considering the petitioner’s reply.
  • The Assessing Officer was directed to grant a personal hearing to the petitioner.
  • Consequently, the notice issued under Section 148 dated 30.03.2023 was also quashed.
  • The writ petition was disposed of accordingly.

Important Clarification

  • Non-consideration of a reply filed under Section 148A(b) renders the order under Section 148A(d) legally unsustainable.
  • Reassessment proceedings must be based on accurate factual assumptions.
  • Opportunity of hearing and due consideration of submissions are mandatory procedural safeguards.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60810052023CW60602023_150420.pdf

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