Addition due to no submission on merits of case: HC gives Petitioner opportunity to file supplementary reply

Mittal International Vs ACIT (Delhi High Court)

1. Present writ petition has been filed challenging the impugned order passed under Section 148A(d) of the Income Tax Act, 1961 (for short ‘Act’) and notice issued under Section 148 of the Act, both dated 26^th July, 2022 for the Assessment Year 2016-17.

2. Learned counsel for the Petitioner states that the respondent has conducted the impugned proceedings on deactivated PAN AAAFM2684G. He states that the Petitioner has repeatedly communicated to the Respondents that it has made all income tax related compliances on correct / active PAN AAAFM7234J as all relevant financial transactions have been fully recorded and accounted for in regular audited final accounts of Petitioner and thus no income has escaped assessment in its hands.

3. Learned counsel for the Petitioner emphasises that the Income Tax Department in pursuance to assessee’s letters filed on 09^th November, 2017 and 23^rd November, 2017 for surrender of incorrect PAN has formally deactivated the same on 05^th December, 2017. He states that there is subsequent correspondence by the Petitioner communicating the factum of deactivation of incorrect PAN as recently as 18^th April, 2022.

4. Issue notice.

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