Tax Order Overturned: Assessing Officer to Reconsider 2013-14 Case After Ignoring Taxpayer's Reply.

The HC set aside the impugned order under Section 148A(d) and the notice under Section 148 of the Income Tax Act for the assessment year 2013-14, as the order was passed without considering the assessee's reply. The matter was remanded to the Assessing Officer for a fresh decision, directing consideration of the petitioner's replies within four weeks. The court left the rights and contentions of all parties open for future proceedings. The argument regarding the notice under Section 148A(b) being time-barred was previously rejected by the court. The writ petition and application were disposed of accordingly.

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Issues: Challenge to notice under Section 148A(b) of the Income Tax Act, 1961; Order passed under Section 148A(d) of the Act; Notice issued under Section 148 of the Act for assessment year 2013-14; Barred by limitation under Section 149 of the Act.

Analysis:
The writ petition was filed to challenge the notice issued under Section 148A(b) of the Income Tax Act, 1961, the order passed under Section 148A(d) of the Act, and the notice issued under Section 148 of the Act for the assessment year 2013-14. The petitioner contended that the impugned order under Section 148A(d) was passed without considering the reply filed by the assessee within the stipulated time. Additionally, it was argued that the notice under Section 148 for the assessment year 2013-14 was issued beyond the limitation period of six years as prescribed in Section 149 of the Act and the extended timeline provided under The Taxation and Other Laws Act, 2020 until 31st March, 2021, rendering the notice barred by limitation.

The senior standing counsel for the respondent-revenue accepted the notice and acknowledged that the impugned order had been passed without considering the reply submitted by the assessee. Consequently, he raised no objection to setting aside the impugned order under Section 148A(d) and the notice under Section 148 of the Act, requesting the matter to be remanded back for a fresh decision by the Assessing Officer. However, he requested the petitioner to file a copy of its reply before the Jurisdictional Assessing Officer at Ward 72(1), Delhi. The argument regarding the notice under Section 148A(b) being issued beyond the limitation was previously rejected by the court in a referenced case.

In light of the above, the High Court set aside the impugned order under Section 148A(d) of the Act and the notice under Section 148 of the Act for the assessment year 2013-14, remanding the matter back to the Assessing Officer for a fresh decision. The Assessing Officer was directed to consider the replies filed by the petitioner before passing a fresh order under Section 148A(d) of the Act within four weeks. The writ petition and application were disposed of with the rights and contentions of all parties left open for future proceedings.

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