Rishva Infrastructures Vs ITO (Gujarat High Court)
The Gujarat High Court allowed a writ petition challenging an order passed under Section 148A(d) of the Income-tax Act, 1961 and the consequential notice issued under Section 148 for AY 2018-19, holding that the proceedings were vitiated by breach of the principles of natural justice.
The petitioner, a partnership firm engaged in construction activities, had filed its return of income for AY 2018-19 declaring total income of ₹58,66,260. The Assessing Officer issued a notice under Section 148A(b) on 21.03.2022 requiring the petitioner to respond by 28.03.2022. The petitioner submitted that it sought an adjournment through the Income-tax portal on 26.03.2022 and received a confirmation email acknowledging successful submission of the request.
According to the petitioner, the Assessing Officer neither considered nor responded to the adjournment request and proceeded to pass an order under Section 148A(d) on 30.03.2022, holding that income of ₹1,42,55,127 had escaped assessment. A notice under Section 148 was also issued on the same date. The petitioner contended that only a very short period had been granted to respond, with effectively four working days available, although the statutory time for issuing the notice extended up to 31.03.2029. It further argued that the information sought related to transactions about four years old, requiring verification of records, and that the opportunity granted under Section 148A(b) was merely formal rather than effective.
