2025 (2) TMI 874 - HC - Income Tax

Order under Section 148A(d) quashed for violating natural justice for failing to consider timely reply; fresh opportunity ordered

Anuj Ghuliani Versus Income Tax Officer & Anr.

HC held that the reopening of assessment violated natural justice because the AO passed an order under section 148A(d) without considering the ... Validity of reopening of assessment proceedings - denial of principle of natural justice - despite the reply having being filed within the statutory period of seven (7) days, AO proceeded to pass an order u/s 148A (d) without considering the reply so filed by the petitioner - HELD THAT:- Revenue fairly states that the petitioner may be given one more opportunity to respond to the notice dated 21.08.2024. The impugned order passed u/s 148A (d) as well as the notice issued u/s 148 are set aside. AO shall consider the reply already filed by the petitioner and pass an appropriate order within a period of four weeks. The Delhi High Court, in a writ petition filed under Article 226/227 of the Constitution of India, addressed issues related to notices issued under the Income Tax Act. The petitioner challenged the timeline provided for response to the notice, alleging a violation of statutory provisions and principles of natural justice. Despite the petitioner submitting a reply within the statutory period, the Assessing Officer proceeded to pass an order without considering the response. The Court set aside the impugned order and notice, directing the Assessing Officer to consider the filed reply and obtain necessary approval if issuing a new notice under the Act. The writ petition and related applications were disposed of accordingly.