Tax Notice Quashed: Court Remands Case for Reassessment, Orders Officer to Address Objections and Provide Fair Hearing.

The HC quashed the impugned order regarding a notice under Section 148 of the Income Tax Act, 1961, for alleged escaped assessment for the Assessment Year 2013-14. The court found that the petitioner had submitted replies to the notice, contrary to the order's conclusion. The matter was remanded for reconsideration, directing the Assessing Officer to consider the petitioner's objections submitted on 01.06.2022 and 02.06.2022 and provide a reasonable opportunity for further proceedings within 12 weeks. The writ petition was allowed, and related notices were nullified.

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Issues:
The judgment involves a notice under Section 148 of the Income Tax Act, 1961 for alleged escaped assessment for the Assessment Year 2013-14. The main issue revolves around the submission of replies by the petitioner to the said notice and the subsequent order based on the alleged non-submission of replies.

Details of the Judgment:

Issue 1: Submission of Replies to Notice
The petitioner received a notice under Section 148 of the Income Tax Act for escaped assessment. The petitioner physically submitted replies on 01.06.2022 and 02.06.2022, with acknowledgments from the Income Tax Office. However, the impugned order wrongly concluded that the petitioner did not file a reply to the notice dated 23.05.2022. The Court found this conclusion to be contrary to the documents on record, thus quashing the order and remanding the matter for reconsideration.

Issue 2: Merits of the Initiation of Proceedings
The respondent argued that there was a sufficient basis for initiating proceedings regarding escaped assessment. Despite this, the respondent agreed to remand the matter for the consideration of the petitioner's objections. The Court directed the Assessing Officer to proceed with the matter on merits after duly considering the objections filed by the petitioner on 01.06.2022 and 02.06.2022, providing a reasonable opportunity to the petitioner. This process was instructed to be completed within 12 weeks from the date of receipt of the order.

In conclusion, the writ petition was allowed, the impugned order dated 30.07.2022 and related notices were quashed, and the matter was remanded for reconsideration on merits. The Assessing Officer was directed to consider the objections filed by the petitioner and provide a reasonable opportunity for further proceedings within a specified timeframe.

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