Non-consideration of reply in reassessment proceedings vitiates the order and consequential notice under the Income-tax Act.

Non-consideration of an electronically filed reply to a notice under Section 148A(b) vitiated the reassessment proceedings because the order under Section 148A(d) proceeded as if no explanation had been filed. The record showed the reply was available, but it had not been communicated to the deciding authority, resulting in denial of effective consideration before issuance of the notice under Section 148. The procedural defect warranted interference, so the order under Section 148A(d) and the consequential notice under Section 148 were quashed and the matter was remitted for fresh consideration in accordance with law.

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Issues: Whether the reassessment order and consequential notice were liable to be quashed for non-consideration of the petitioner's reply to the notice issued under Section 148A(b) of the Income-tax Act, 1961.

Analysis: The reply sent electronically in response to the notice under Section 148A(b) was on record, but the impugned order proceeded on the basis that no explanation had been filed. The reply had not been communicated to the authority passing the order, and the petitioner was therefore denied effective consideration of the response before the order under Section 148A(d) and the notice under Section 148 were issued. This amounted to a procedural defect warranting interference.

Conclusion: The impugned order under Section 148A(d) and the consequential notice under Section 148 were quashed, and the matter was remitted for fresh consideration in accordance with law.

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