Reassessment notice set aside where the assessee's reply was not considered and less than statutory response time was allowed.

Reassessment proceedings under the Income-tax Act were challenged on the ground that the assessee was given only five days to respond under Section 148A(b) and that an email reply filed within time was not considered before the order under Section 148A(d). The Court accepted that the existing reply had to be examined before further action and granted the assessee another opportunity to respond. The order under Section 148A(d) and the consequential notice under Section 148 were set aside, and the matter was remitted to the Assessing Officer to consider the reply and pass a fresh order.

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Issues: Whether the reassessment order under Section 148A(d) of the Income-tax Act, 1961 and the consequential notice under Section 148 of the Income-tax Act, 1961 were liable to be set aside for non-consideration of the reply filed by the assessee and for granting less than the statutory time under Section 148A(b) of the Income-tax Act, 1961.

Analysis: The writ petition challenged the notice under Section 148A(b), the order under Section 148A(d), the notice under Section 148 and the approval under Section 151 of the Income-tax Act, 1961 on the ground that the assessee was given only five days to respond instead of the statutory period and that the reply sent on email within time was not considered before passing the order under Section 148A(d). The Revenue fairly accepted that the petitioner should be afforded one more opportunity to respond. The Court accepted this position and held that the reply already filed had to be considered before any further action.

Conclusion: The order under Section 148A(d) and the consequential notice under Section 148 of the Income-tax Act, 1961 were set aside, and the matter was remitted to the Assessing Officer to consider the existing reply and pass a fresh order.

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