Order under Section 148A(d) challenged for natural justice breach; High Court set aside order and directed fresh response

Order under Section 148A(d) was quashed by the HC because the assessing officer relied on statements and documents concerning cash, loans and other transactions that were neither specified in the annexure to the Section 148A(b) notice nor supplied to the taxpayer, amounting to a breach of the principle of natural justice; consequence: the HC set aside the impugned order, directed the taxpayer to treat those allegations as a show cause notice and file a response within four weeks, and directed the assessing officer to consider and dispose of that response within the stipulated time.

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Issues involved: Challenge to impugned order under Section 148A(d) of the Income Tax Act, 1961 for assessment year 2019-20 on grounds of violation of natural justice.

Summary:
The petitioner challenged the impugned order dated 14th April, 2023, under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2019-20, alleging a violation of the principle of natural justice. It was contended that the assessing officer relied on statements and documents related to cash, loan, and transactions without issuing show cause notices or providing relevant material to the petitioner. The respondent did not deny this allegation. The High Court, after considering the submissions and circumstances, set aside the impugned order and directed the petitioner to treat the allegations as a show cause notice. The petitioner was instructed to file a reply within four weeks, which the assessing officer would consider within eight weeks and pass a reasoned order after providing an opportunity for a hearing.

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