Court sets aside Income Tax Act order for AY 2019-20, directs AO to reconsider, provide hearing

The court set aside the order and notice issued under the Income Tax Act for AY 2019-20 due to the Assessing Officer's failure to consider the petitioner's filings and accommodate requests. The matter is to be re-examined with the AO directed to provide relevant information and grant a personal hearing. The AO is permitted to conduct a fresh examination, ensuring a fair opportunity for the petitioner to present their case. The writ petition is disposed of accordingly, with parties instructed to comply with the digitally signed order.

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Issues involved:
The judgment involves a challenge to an order passed under Section 148A(d) of the Income Tax Act, 1961 and a consequential notice issued under Section 148 of the Act for Assessment Year (AY) 2019-20.

Details of the judgment:

Challenge to Order and Notice:
The writ petition challenges the order dated 30.03.2023 passed under Section 148A(d) of the Income Tax Act, 1961, and a consequential notice issued on the same date under Section 148 of the Act for AY 2019-20. The petitioner is alleged to have registered bogus long term capital gains through trading in stock with ante-dated contract notes, facilitated by a specific entity.

Contentions and Refutations:
The petitioner denies the allegations of bogus long term capital gains and being a 'non-filer'. The petitioner's counsel argues that no supporting material has been provided by the Assessing Officer (AO) to substantiate the claims. It is highlighted that the petitioner had filed the return for the AY in question on 28.02.2020, followed by a revised return on 10.01.2021.

Re-Examination and Set Aside:
Considering the failure of the AO to acknowledge the petitioner's filings and requests for accommodation, the court decides to set aside the impugned order and notice. The matter is to be re-examined by the AO, who is directed to provide the petitioner with relevant information and material in his possession and grant a personal hearing.

De Novo Exercise and Disposal:
The AO is given the liberty to conduct a fresh examination of the matter, ensuring a fair opportunity for the petitioner to present their case. The judgment concludes by disposing of the writ petition in the mentioned terms, with parties instructed to act based on the digitally signed copy of the order.

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