Court sets aside order challenging notice under Section 148 for AY 2018-19. Emphasizes importance of following statutory mandates.

The Court set aside the order challenging the notice under Section 148 for AY 2018-19 as it failed to consider the detailed reply filed by the petitioner, which included all financial transactions. The Court emphasized the importance of following statutory mandates and remanded the matter back to the Assessing Officer for a fresh order within eight weeks. The decision highlighted the necessity for proper consideration of all relevant submissions in assessment proceedings under the Income Tax Act to avoid breaching statutory mandates.

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Issues:
Challenging order under Section 148A(d) of the Income Tax Act, 1961 and notice issued under Section 148 for AY 2018-19.

Analysis:

1. Petitioner's Submissions:
The petitioner challenged the order and notice issued to Citizen Model School, disclosing annual receipts. The petitioner argued that all financial transactions were duly accounted for in the return of income. Citing a Gujarat High Court case, the petitioner contended that the school is part of the petitioner-society and cannot be treated as a separate entity for assessment purposes.

2. Respondents' Submissions:
The Revenue argued that the petition was premature as only a notice had been issued. Referring to a Punjab and Haryana High Court judgment, they emphasized that interference at a premature stage should be avoided. The Revenue also highlighted the complexity of correlating cash deposits with the return filed by the petitioner-society.

3. Court's Reasoning on New Re-assessment Scheme:
The Court discussed a previous judgment emphasizing the intent of the new re-assessment scheme to reduce litigation and promote ease of doing business. It noted that breaching the mandate of Section 148A(c) occurs if the reply filed by the assessee is not considered in the order under Section 148A(d).

4. Impugned Order Analysis:
The Court found that the impugned order failed to consider the detailed reply filed by the petitioner, which accounted for all financial transactions. It was noted that the school's aggregate annual receipts were higher than mentioned in the notice. The Court applied the Gujarat High Court judgment and concluded that the error was in breaching the statutory mandate of the Act.

5. Relief Granted:
As the Revenue did not examine the petitioner's plea regarding the inclusion of all school transactions in the books of accounts, the order was set aside. The matter was remanded back to the Assessing Officer for a fresh order within eight weeks, emphasizing the importance of following statutory mandates.

In conclusion, the Court allowed the writ petition, highlighting the necessity for proper consideration of all relevant submissions and compliance with statutory provisions in assessment proceedings under the Income Tax Act.

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