Facts of the Case

  • The Petitioner challenged:
    • Notice dated 14.03.2022 under Section 148A(b)
    • Order dated 24.03.2022 under Section 148A(d)
    • Notice dated 25.03.2022 under Section 148 for AY 2018–19
  • The notice sent via email was in an encrypted format and inaccessible.
  • The Petitioner informed the Respondent immediately regarding the issue.
  • Physical copy received on 17.03.2022 required response by 23.03.2022.
  • This resulted in less than the mandatory 7 days period.
  • Request for adjournment was ignored.
  • Order under Section 148A(d) was passed ex-parte.
  • Petitioner later submitted reply, but Respondent proceeded to issue notice under Section 148.

Issues Involved

  1. Whether failure to provide minimum 7 days’ time under Section 148A(b) vitiates reassessment proceedings?
  2. Whether passing order under Section 148A(d) without considering reply violates principles of natural justice?
  3. Whether subsequent notice under Section 148 is sustainable when foundational procedure is defective?

Petitioner’s Arguments

  • Notice sent via email was inaccessible due to encryption.
  • Effective service occurred only on 17.03.2022.
  • Less than statutory minimum 7 days was provided.
  • Request for adjournment was not considered.
  • Order passed under Section 148A(d) is illegal and arbitrary.
  • Relied on precedent: Shri Sai Co-Operative Thrift and Credit Society Ltd. vs ITO (Delhi High Court), which mandates minimum 7 days' time.

Respondent’s Arguments

  • Revenue fairly submitted that it had no objection to remand of the matter.
  • Agreed that fresh consideration could be undertaken by the Assessing Officer.

Court Order / Findings

  • The Court held that:
    • Minimum statutory time under Section 148A(b) must be provided.
    • Failure to do so renders proceedings defective.
  • The impugned order under Section 148A(d) dated 24.03.2022 was set aside.
  • Matter remanded to Assessing Officer for fresh decision.
  • Direction:
    • Petitioner to re-file reply within one week.
    • AO to pass fresh reasoned order within eight weeks.

Important Clarification

  • The Court did not comment on merits of the case.
  • All rights and contentions of both parties were kept open.

Sections Involved

  • Section 148A(b), Income Tax Act, 1961
  • Section 148A(d), Income Tax Act, 1961
  • Section 148, Income Tax Act, 1961

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:4058-DB/MMH28092022CW140292022_183324.pdf

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