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2022 (6) TMI 244 - HC - Income TaxValidity of reopening of assessment u/s 147 - rejecting the objections submitted by the petitioner to notice issued under Section 148-A(b) by ignoring the reply submitted by the petitioner - HELD THAT:- As abundantly clear that the mandate of Section 148- A(b) of the Income Tax Act that the assessee shall be provided a minimum of seven days and maximum of thirty days, which may be extended by the I.T.O. for filing reply to the show cause notice, was not complied with. Furthermore, annexure to the notice indicates that the assessment was sought to be reopened in respect of a suspicious transaction which took place in a bank account maintained at the Oriental Bank of Commerce, Connaught Place, New Delhi, Delhi India Branch in the year 2017- 18. In the reply petitioner, pertinently asserted that he had no connection whatsoever with the said bank account and sought details thereof so that proper response could be filed. However, the I.T.O. expressly ignored the reply of the petitioner and passed the impugned order (Annexure- 6) dated 30.3.2022, wrongly mentioning therein that the petitioner did not file reply to the notice under Section 148-A(b) - The said finding in the impugned order is factually incorrect in view of the admitted material available on record. The response to the notice was unquestionably submitted by the petitioner within the timeline as provided under Section 148-A(b) and thus, there was no reason whatsoever for the I.T.O. not to have provided the requisite details to the petitioner. Had the account details be provided and if the petitioner was able to establish that he had no connection with the suspected bank account, manifestly, the subsequent proceedings would not have been required. It is clear that the Income Tax Authorities were trying to cover up the default on their part in not having the notice served properly upon the petitioner. Since the impugned order came to be passed on 30.03.2022, there was no ostensible reason for the Tax authorities to ignore the reply dated 29.3.2022 filed by the petitioner. As a consequence, the impugned order (Annexure-6) dated 30.03.2022, does not stand to scrutiny, as the same is absolutely arbitrary and perverse and also suffers from the gross violation of the fair play and principles of natural justice. Consequently, the impugned order (Annexure-6) dated 30.03.2022 is quashed and set aside.
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