9911796707
TMI Blog2024 (12) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent under Section 148A (d) of the Income Tax Act, 1961 (for short 'Act'), wherein an order has been passed for initiation of re-assessment proceeding against the petitioner pertaining to Financial Year 2018-19 corresponding to Assessment Year 2019-20. The petitioner has further prayed for setting aside the Notice dated 29.03.2024 issued by 3rd Respondent, wherein re-assessment proceeding has been initiated against this petitioner on the ground of escaped assessment within the meaning of Section 147 of the Act. 3. The brief fact of the case as per the pleadings is that the writ petitioner was issued a show cause notice under Section 148A (b) of the Act and was show caused as to why proceeding for re-assessment under Section 148 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days was given to the petitioner to submit its reply after receipt of the Investigation Report, petitioner on 19th March, 2024 demanded seven days' time for replying to the show cause notice, but vide Notice dated 20th March, 2024, 3rd respondent directed the petitioner to submit its reply by 11.30 A.M. on 22nd March, 2024, failing which, it was indicated that appropriate order would be passed. 7. At this stage, it is important to indicate that in the said notice dated 20th March, 2024, a new allegation was added in show cause notice with respect to time deposit of Rs. 3,91,08.021/- made by petitioner and it was directed to explain the same. 8. Petitioner again requested for seven days' time to file its reply considering the new allegati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys from the date of issuance of notice. 11. We have heard, Mr. Sumeet Gadodia, learned counsel for petitioner and Mr. Kumar Vaibhav, learned counsel for Respondent-Department. Having considered the rival submissions of learned counsels and on perusal of the record, we are of the opinion that order passed by 3rd Respondent initiating re-assessment proceeding against the petitioner is not only in utter violation of the principles of natural justice, but the same has been passed in undue haste which smacks of arbitrariness, as statutory provision of Section 148A has not been followed by 3rd Respondent. 12. It is well settled principles of law that anything done in undue haste can also be termed as 'arbitrary' and cannot be condoned in law. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was put to notice regarding Term Deposit totaling to Rs. 3,91,08,021/-. However, they have tried to defend their said action by stating, inter alia, that said information is already available in 26AS and was also within the knowledge of the petitioner and, thus, it cannot be said that a new allegation has been levelled against the petitioner. 14. In our opinion, subsequent notice dated 20th March, 2024 clearly contained additional allegations, wherein as against time deposit amount of Rs. 26,51,899/-, petitioner was directed to explain the source of fund of time deposit of Rs. 3,91,08,021/-. Thus, certainly, new facts were introduced in the show cause notice and the petitioner was put to notice for the first time in respect of aforesaid f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 29.03.2024 was passed by 3rd respondent in utter violation of the principles of natural justice and contrary to statutory provisions contained under Section 148A of the Act. 15. Under the aforesaid circumstances, impugned order dated 29.03.2024 (Annexure 14 of the writ petition) and Notice initiating re-assessment proceeding under Section 148 dated 29.03.2024 (Annexure-15), both issued by the 3rd Respondent, are hereby, quashed and set aside. 16. However, the 3rd respondent is permitted to initiate fresh proceedings; however, it must be strictly in terms of the provisions of Section 148 of the Act. In the facts and circumstances of the case, we are convinced that the petitioner has been subjected to unnecessary harassment and, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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