Facts of the Case

  • The petitioner challenged:
    • Notice dated 19.03.2022 under Section 148A(b)
    • Order dated 30.03.2022 under Section 148A(d)
    • Reassessment notice under Section 148
  • The notice required reply within six days, i.e., by 25.03.2022.
  • The petitioner:
    • Sought adjournments due to relocation to UAE
    • Filed a detailed reply on 29.03.2022 with supporting documents before passing of the order
  • However, the Assessing Officer passed the order stating no response was filed

Issues Involved

  1. Whether granting less than seven days violates Section 148A(b)?
  2. Whether non-consideration of reply violates Section 148A(c)?
  3. Whether reassessment proceedings are valid if principles of natural justice are breached?

Petitioner’s Arguments

  • Notice violated Section 148A(b) as minimum 7 days time is mandatory.
  • Reply was filed before passing of the order and was available on record.
  • The Assessing Officer passed the order without considering submissions and evidence.
  • The order incorrectly recorded that no reply was filed.

Respondent’s Arguments

  • Revenue relied on the issued notices and proceedings.
  • However, no substantial justification was provided for:
    • Granting less than statutory time
    • Non-consideration of reply already on record

Court Findings / Judgment

  • The Court held:
    • Minimum 7 days time is mandatory under Section 148A(b); giving 6 days is illegal.
    • The Assessing Officer is statutorily bound to consider the reply under Section 148A(c).
    • Non-consideration of reply violates the statutory mandate and principles of natural justice.
  • The Court observed:
    • The reply dated 29.03.2022 was already available before passing the order
    • Failure to consider it renders the order unsustainable

Court Order

  • Impugned order under Section 148A(d) set aside
  • Notice under Section 148 quashed
  • Matter remanded with direction:
    • Consider petitioner’s reply
    • Pass a reasoned order within 8 weeks

Important Clarifications

  • “Not less than seven days” under Section 148A(b) is mandatory, not directory
  • Use of word “shall” under Section 148A(c) imposes a strict obligation
  • Even if reply is filed late but before order, it must be considered

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:3309-DB/MMH26082022CW123632022_194924.pdf

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