Court grants appeal, quashes order under Income Tax Act, directs reassessment. Stay on enforcement, no costs.

The Court allowed the appeal, granted the writ petition, and quashed the order dated 13th April 2022 under Section 148A(d) of the Income Tax Act, 1961. The assessing officer was directed to reconsider the matter, provide complete insight portal information to the assessee, allow for a response period, conduct a hearing, and issue a reasoned order. Enforcement of the notice dated 13th April 2022 was stayed pending completion of the process. No costs were awarded, and certified copies of the order were to be provided promptly.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Validity of the reassessment proceedings under Section 148A of the Income Tax Act, 1961.
3. Alleged procedural irregularities and violation of principles of natural justice.
4. Adequacy of the information provided to the assessee.
5. Requirement of a reasoned order by the assessing officer.

Detailed Analysis:

Condonation of Delay:
1. The application to condone the delay of 15 days in filing the appeal was considered. The Court, after hearing both parties, was satisfied with the reasons provided in the affidavit supporting the application. Consequently, the delay in filing the appeal was condoned, and the application (I.A. CAN 1 of 2022) was allowed.

Validity of Reassessment Proceedings:
2. The intra-Court appeal challenged the order dated 23rd May 2022, which dismissed the writ petition against the reassessment order dated 13th April 2022 under Section 148A(d) of the Income Tax Act, 1961. The writ petitioner (assessee) contended that the reassessment proceedings were initiated based on incorrect information and without proper consideration of their response.

Procedural Irregularities and Natural Justice:
3. The Court noted that the assessee was issued a notice under Section 148A(b) on 22nd March 2022, requiring a response by 29th March 2022. The assessee requested an adjournment, and the deadline was extended to 12th April 2022. The assessee submitted a reply on 9th April 2022, disputing the information and providing supporting documents. The Court found that the assessing officer failed to provide the complete information from the insight portal and did not consider the assessee's objections and documents adequately, thereby violating principles of natural justice.

Adequacy of Information Provided:
4. The Court emphasized that the assessing officer should have provided the information based on which the notice under Section 148A(b) was issued. The failure to do so constituted a serious procedural error. The assessee had contested the accuracy of the information, stating that the transactions mentioned did not match their records. The Court held that the assessing officer should have furnished the insight portal information and given the assessee an opportunity to respond further.

Requirement of a Reasoned Order:
5. The Court observed that the order dated 13th April 2022 lacked a detailed discussion on the assessee's objections and the documents submitted. The order merely stated that income chargeable to tax had escaped assessment without addressing the specific contentions raised by the assessee. The Court highlighted the necessity for a reasoned order, referencing decisions from higher courts that mandate a detailed explanation when rejecting an assessee's reply.

Conclusion:
6. The Court concluded that the order dated 13th April 2022 under Section 148A(d) was unsustainable and set it aside. The matter was remanded to the assessing officer for fresh consideration, directing the officer to provide the complete insight portal information to the assessee and allow seven days for further response. The assessee should be granted a hearing, either physical or virtual, and a reasoned order should be passed thereafter. The notice issued under Section 148 dated 13th April 2022 was not to be enforced until this process was completed.

Final Orders:
7. The appeal was allowed, the writ petition was granted, and the order dated 13th April 2022 was quashed. The assessing officer was instructed to follow the outlined procedure to ensure compliance with natural justice and provide a reasoned decision based on the merits of the case. No costs were awarded, and urgent certified copies of the order were to be furnished upon compliance with legal formalities.

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