2021 (6) TMI 1056 - HC - Income Tax

High Court halts proceedings on Income Tax Act Section 148 notice, grants Respondent time to reply.

The High Court stayed further proceedings related to a notice issued under Section 148 of the Income Tax Act until the next date, allowing the Respondent ... Validity of Reopening of assessment u/s 147 - applicability of the newly inserted provisions of Section 148A and the amendments brought inter alia in Section 149 - violation of mandatory provisions for issuance of notice, which have been effective from 1st April, 2021. HELD THAT:- As Petitioner drew our attention to the notice annexed at Exhibit ‘L’ with reference to the provisions of Section 148A of the Act, which requires the assessing officer to conduct the inquiry and also provide an opportunity of being heard, which has not been apparently done. He, therefore, seeks stay of further proceedings in the matter. As Respondent-Revenue submits that she needs time to file reply in the matter, we are inclined to stay the proceedings in connection with notice dated 7th April, 2021 under Section 148 of the Income Tax Act for the assessment year 2013- 2014. Till the next date, there shall be ad-interim stay to the proceedings in connection with notice dated 7th April, 2021. The Petitioner challenged a notice issued by Respondent No.1 under Section 148 of the Income Tax Act for the assessment year 2013-2014, alleging violation of mandatory provisions effective from 1st April, 2021. The High Court stayed further proceedings related to the notice until the next date, allowing the Respondent to file a reply within three weeks. The case is listed for hearing on 01/07/2021.