2022 (8) TMI 53 - HC - Income Tax

Appellant Granted Opportunity to Respond to Tax Notice: Fresh Hearing Ordered

Girdhar Gopal Dalmia Versus The Union of India & Ors.

Girdhar Gopal Dalmia Versus The Union of India & Ors. - [2023] 450 ITR 143 (Cal) Issues:Challenge to notice under Section 148A(b) of the Income Tax Act, 1961 for inadequate opportunity granted to the appellant.Analysis:The appellant challenged a notice issued under Section 148A(b) of the Income Tax Act, 1961, contending that the minimum required time of 7 days for response was not granted. The appellant submitted a reply on 23rd March, 2022, highlighting the lack of adequate notice and requesting details of the enquiry conducted by the department. The Assessing Officer passed an order on 29th March, 2022, noting that the appellant's reply lacked specific answers and focused on the effect of Section 148 and 148A of the Act. The High Court reviewed the reply and found it to be focused on merits, with enclosures such as bank statements provided to support the remittances made through proper channels.Analysis:The Court examined the statutory provision of Section 148A(b) of the Act, which mandates the Assessing Officer to provide a minimum of 7 days for the assessee to respond. The notice in this case was received online on 17th March, 2022, which was followed by a state holiday and other non-working days, leading to inadequate time for the appellant to respond adequately. The Court emphasized that the opportunity given to the appellant should be reasonable and not illusory, considering the holidays and the necessity for a proper timeframe for response.Analysis:The Court concluded that the appellant should be granted a fresh opportunity by the Assessing Officer in accordance with the provisions of Clause (b) of Section 148A of the Act. The matter was remanded back to the Assessing Officer for reconsideration, directing the appellant to submit a fresh reply within two weeks. The appellant was granted a personal hearing through video conferencing, and any documents produced by the appellant were to be considered before passing a fresh order under Clause (d) of Section 148A. The Assessing Officer was instructed to address the appellant's request for certain documents and proceed further in compliance with the law.Analysis:The Court disposed of the appeal and connected application with no costs, providing directions for further proceedings. The judgment was signed by Mr. T.S. Sivagnanam and Mr. Hiranmay Bhattacharyya, JJ., with an order for an urgent certified copy to be furnished to the parties upon completion of legal formalities.