Natural justice in reassessment proceedings: Delhi High Court quashes section 148A(d) order and remands for fresh hearing.

Section 148A(d) reassessment proceedings were set aside where the petitioner alleged improper service of the show cause notice, denial of an effective opportunity to reply, and non-application of mind. The respondents ed that no reply opportunity had been afforded and did not oppose remand. The Delhi High Court therefore quashed the impugned order under section 148A(d) and the consequential notice under section 148, granted liberty to file an additional reply, and directed the Assessing Officer to pass a fresh reasoned order in accordance with law after giving the petitioner an opportunity to respond.

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Issues: Whether the impugned order under section 148A(d) and the consequential notice under section 148 of the Income-tax Act, 1961 were liable to be set aside and the matter remanded for fresh consideration in view of the alleged denial of opportunity and procedural infirmities.

Analysis: The petitioner challenged the reassessment proceedings on the ground that the show cause notice was not properly served, no effective opportunity was afforded to file a reply, and the order under section 148A(d) suffered from non-application of mind and violation of natural justice. The respondents accepted that the petitioner had not had the opportunity to file a reply and did not object to a remand for a fresh decision. The Court, therefore, set aside the impugned order and consequential notice, granted liberty to file an additional reply, and directed a fresh reasoned decision in accordance with law.

Conclusion: The challenge succeeded procedurally, and the matter was remanded to the Assessing Officer for fresh adjudication after granting the petitioner an opportunity to respond.

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