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2022 (6) TMI 33 - DELHI HIGH COURTReopening of assessment - Notice issued u/s 148A(b) - as argued no opportunity for personal hearing was provided to the Petitioner Petitioner states that approval under Section 151 of the Act has only been taken for passing the order under Section 148A(d) of the Act and not for issuance of notice under Section 148 - HELD THAT:- Reassessment in the present case was sought to be initiated merely for verification. This Court is of the view that even if the reassessment was being done for verification in accordance with Explanation 1 to Section 148, nothing prevented the AO from conducting an enquiry with respect to the said information in accordance with Section 148A(a) of the Act. In any event, it was all the more necessary in the present case for the AO to thoroughly scrutinise the contentions and submissions advanced by the petitioner-assessee before passing an order under Section 148A(d) of the Act. This Court is of the view that since the impugned order under Section 148A(d) of the Act had been passed on 31st March, 2022 i.e. after receipt of the detailed reply by the Petitioner dated 24th March, 2022, the AO should have considered the same as it was available with him/her on record. By not considering the reply of the Petitioner dated 31st March, 2022, the mandate of Section 148A(c) of the Act has been violated as it casts a duty on the Assessing Officer, by using the expression ‘shall’, to consider the reply of the petitioner/assessee in response to notice under Section 148A(b) of the Act before making an order under Section 148A(d) of the Act. This Court is also of the opinion that significance of issuance of a show cause notice at a stage prior to issuance of a reassessment notice under Section 148 of the Act has been lost on the Respondents.Consequently, this Court is of the opinion that a progressive as well as futuristic scheme of reassessment whose intent is laudatory has in its implementation not only been rendered nugatory but has also had an unintended opposite result. Consequently, the impugned order dated 31st March, 2022 issued under Section 148A(d) of the Act and the notice dated 31st March, 2022 issued under Section 148 of the Act are quashed and the matter is remanded back to the Assessing Officer for a fresh determination. The Assessing Officer is directed to pass a fresh reasoned order under Section 148A(d) of the Act after considering the Petitioner’s detailed reply dated 24th March, 2022 in accordance with law within eight weeks. In the event the Assessing Officer wants certain clarification or would like the petitioner’s response to any specific information received by the revenue, it shall be at liberty to give a supplementary notice.
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