Facts of the Case

The present writ petition was filed challenging the order passed under Section 148A(d) of the Income Tax Act, 1961, along with the consequential notice issued under Section 148, both dated 31 March 2022 for Assessment Year 2018–19.

The petitioner contended that upon receiving a notice dated 17 March 2022, he sought an adjournment on 23 March 2022 requesting additional time up to 02 April 2022 to file a reply. The petitioner subsequently submitted a reply via email on 30 March 2022 due to closure of the online portal.

However, the respondent passed an ex-parte order without considering the said reply, allegedly violating statutory provisions and resulting in miscarriage of justice.

Issues Involved

  1. Whether passing an order under Section 148A(d) without considering the petitioner’s reply amounts to violation of principles of natural justice.
  2. Whether the reassessment proceedings under Section 148 are valid in absence of supply of incriminating material.
  3. Whether the petitioner is entitled to relief when no substantive reply on merits was filed before the Assessing Officer.

Petitioner’s Arguments

  • The respondent failed to consider the reply submitted via email before passing the impugned order.
  • The order under Section 148A(d) was passed in violation of statutory mandate and principles of natural justice.
  • Adequate opportunity of being heard was not provided.

Respondent’s Arguments

  • The petitioner did not submit any reply on merits but merely requested documents/information.
  • The petitioner delayed seeking relevant documents and approached the Court belatedly.
  • The reassessment proceedings had already progressed to the stage of Section 148.

Court’s Findings / Order

  • The petitioner’s reply did not deal with the merits of the case and only sought documents from the respondent.
  • If the petitioner required documents, such request should have been made at the earliest stage and not after significant delay.
  • Since the matter had already progressed to the Section 148 stage, interference was not warranted.
  • The respondent was directed to supply incriminating material/information within four weeks.
  • The petitioner was granted liberty to raise all contentions before the Assessing Officer.
  • The writ petition was disposed of with directions.

Important Clarification

  • Mere request for documents without addressing merits is insufficient to challenge reassessment proceedings.
  • Delay in seeking relevant information weakens the petitioner’s case.
  • Courts may decline interference once reassessment proceedings reach an advanced stage, but may still protect procedural fairness.

Sections Involved

  • Section 148 – Income escaping assessment
  • Section 148A(d) – Order prior to issuance of notice under Section 148
  • Principles of Natural Justice

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/MMH10112022CW153892022_185257.pdf


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