Tax Adjudication Order Overturned for 2017-18 Due to Procedural Errors; Case Sent Back for Reevaluation.

The HC set aside the adjudication order under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2017-18, due to procedural discrepancies, including insufficient response time and lack of a personal hearing. The matter was remanded to the jurisdictional assessing officer for reconsideration, allowing the petitioner to submit an additional response within 10 days. The officer must resolve the issue within 8 weeks, providing a hearing opportunity. Additionally, the notice under Section 148 was annulled, and the writ petition was disposed of, with instructions for parties to follow the server copy of the order.

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Issues:
Challenging show cause notice and adjudication order under Section 148A(b) of the Income Tax Act, 1961 for the assessment year 2017-18, issuance of notice under Section 148 of the Act by the jurisdictional assessing officer instead of faceless manner as required under Section 151A.

Analysis:
The petitioner filed a writ petition challenging the show cause notice and adjudication order under Section 148A(b) of the Income Tax Act, 1961, dated 15th March 2024, for the assessment year 2017-18. The petitioner also contested the notice issued under Section 148 of the Act, arguing that it should have been issued in a faceless manner as per Section 151A of the Act. The petitioner's advocate highlighted that the notice under Section 148A(b) granted only 5 days instead of the required 7 clear days for response. Additionally, despite the petitioner's request for a personal hearing, no such opportunity was provided by the jurisdictional assessing officer.

The respondents' advocate acknowledged that the petitioner had responded to the show cause notice but admitted that no personal hearing was granted despite the petitioner's request. The Court noted the discrepancies in the time given for response and the lack of a personal hearing. Consequently, the Court decided to remand the matter back to the jurisdictional assessing officer for a fresh decision. The order passed under Section 148A(d) of the Act for the assessment year 2017-18 was set aside, allowing the petitioner to file an additional response within 10 days. The jurisdictional assessing officer was directed to dispose of the matter within 8 weeks after affording the petitioner an opportunity of hearing.

The Court further set aside the notice issued under Section 148 of the Act for the assessment year 2017-18. It was deemed unnecessary at that stage to delve into the competence of the jurisdictional assessing officer to issue such a notice. The writ petition was disposed of with the above observations and directions, emphasizing that all parties should act based on the server copy of the order downloaded from the Court's official website.

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