TMI Blog2022 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. Thus, we have no hesitation to hold that the assessing officer acted in great haste and virtually reduced the procedure under the amended provision to a nullity. We have queried the learned Advocate appearing for the assessee as to whether the assessment was getting time-bared. The prompt reply was that the power to re-assess is available to the authority till the year 2023 if permissible under law. Therefore, we fail to understand as to what was the great hurry on the part of the assessing officer, Sri Niladri Kumar Ghosh to pass the order dated 23rd March, 2022 by ignoring the reply given by the assessee and uploaded in the department's portal on 21st March, 2022. The other officers who are also similarly placed should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 2022 in WPO/1943/2022. The appellant had filed the writ petition challenging the order dated 23rd March, 2020 (wrongly noted by the learned writ Court as 23rd June, 2022) passed under Section 148A(d) of the Income Tax Act, 1961. The learned Single Judge was of the view that the appellant did not file their objection to the notice issued under Section 148A(b) of the Act within the time permitted and, therefore, the Court was not inclined to interfere with the order dated 23rd March, 2022. The correctness of the order passed in the writ petition is challenged before us. We have heard Mr. Pratyush Jhunjhunwala, learned Advocate appearing for the appellant and Mr. Soumen Bhattacharyya, learned standing Counsel for the respondent. At th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable view ought to have been taken by the ITO in the instant case as admittedly the reply cannot be submitted on 18th March, 2022 if it was required to be submitted in physical form because the Income Tax Department was closed on account of a public holiday. Therefore, the interpretation given by the ITO is a thoroughly narrow interpretation and a perverse outlook. It was argued on behalf of the respondent that had the assessee made a request for extension of time as provided in clause (b) of Section 148A, then in all probabilities, there could have been a chance for grant of extension of time. However, the assessee did not make any such request. This argument also has to fail for the simple reason that it is on record that the reply/ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e new re-assessment scheme introduced by the Finance Act, 2021 and pointed out that the safeguards were brought in the amended re-assessment scheme in accordance with the judgment of the Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. vs. ITO, reported in (2003) 259 ITR 19 (SC) before any exercise of jurisdiction to initiate reassessment proceedings under Section 148 of the Act. Further, the Court held that the term information as contained in Explanation-1 to Section 148 cannot be lightly resorted so as to reopen assessment and this information cannot be a ground to give unbridled powers to the revenue. Further the Court took into consideration the order which was impugned therein and found the same to be cryptic. The next a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. This Court takes judicial notice that in a majority of reassessment cases post 1st April, 2021, the orders under Section 148A(d) of the Act use a template/general reason to reject the defence of the assessee on merits, namely, found devoid of any merit because the assessee company has failed to produce the relevant documents in respect of transactions mentioned in show case notice.... it is established that the assessee has no proper explanation... Consequently, this Court is of the opinion that a progressive as well as futuristic scheme of re-assessment whose intent is laudatory has in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly placed should not reduce the provisions of the Act in an empty formality, we are inclined to impose cost on the authority to serve as a deterrent. For all the above reasons, the appeal is allowed and the order dated 23rd March, 2022 passed under Section 148A(d) and the notice dated 11th March 2022 are quashed and the matter is remanded to the assessing officer to take note of the reply given by the assessee dated 21st March, 2022 and consider the same. According to the learned Advocate for the appellant, the assessee sought for certain information. Hence, this reply should be considered in a meaningful manner and action be initiated in accordance with the law. There will be an order directing the respondent/department to pay costs of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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