Case Law Details
Jagannath Haldar Through Vs PCIT (Delhi High Court)
The Delhi High Court has quashed an income tax notice in the case of Jagannath Haldar Through vs. PCIT. The court found that the Assessing Officer (AO) had failed to consider the petitioner’s reply while passing the order under Section 148A(d) of the Income Tax Act. The court held that this amounted to a breach of principles of natural justice and set aside the order. The AO was given the opportunity to pass a fresh order after giving a personal hearing to the petitioner and considering their reply.
The petitioner contended that their reply was not taken into account by the AO while passing the order under Section 148A(d) of the Income Tax Act. In support of this claim, the petitioner provided a hard copy of an email dated 14.03.2023. The respondent/revenue agreed that there had been a breach of principles of natural justice and suggested that the matter be remanded. The court set aside the impugned order and granted the AO the liberty to pass a fresh order after giving a personal hearing to the petitioner and considering their reply. The AO was instructed to pass a speaking order and provide a copy to the petitioner.
The Delhi High Court quashed the income tax notice issued to the petitioner due to the non-consideration of their reply by the Assessing Officer. The court found that this amounted to a breach of principles of natural justice. The AO was given the opportunity to pass a fresh order after giving a personal hearing to the petitioner and considering their reply. The court disposed of the writ petition accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Allowed, subject to just exceptions.
W.P.(C) 8204/2023 & CM APPL. 31482/2023[Application filed on behalf of the petitioner seeking interim relief].
2. Issue notice.
2.1 Mr Prashant Meherchandani, learned senior standing counsel accepts notice on behalf of the respondents/revenue.
3. substantial prayers made in the writ petition read as follows:
(i) issue writ, order or directions in the nature of certiorari, quashing and setting aside the impugned DIN & Order No. ITBA/AST/F/148A (SCN) 2022-23/ 1051375040(1) dated 27.03.2023 passed under Section 148A(d) of the Income Tax Act 1961;
(ii) issue writ in the nature of prohibition commanding Respondents to forbear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the impugned DIN & Order No. ITBA/AST/F/148A (SCN) 2022-23/ 1051375040(1) dated 27.03.2023 passed under Section 148A(d) of the Income Tax Act 1961 and/or in any proceedings initiated thereunder for the Assessment Year 2016-17;
(iii) issue appropriate writ, order or direction, setting aside impugned Notice under Section 148 of the Income Tax Act 1961 dated 27.03.2023 being DIN & Notice No. ITBA/AST/S/148_l/2022-23/1 051379517(1) issued as a consequence of prayer (a) above by declaring the said Notice to have been issued without jurisdiction;
4. Ms Pankhuri Shrivastava, learned counsel for the petitioner says, that there has been a breach of principles of natural justice, inasmuch as the petitioner’s reply was not taken into account by the Assessing Officer (AO) while passing the order dated 03.2023 under Section 148A(d) of the Income Tax Act, 1961 [in short, “the Act”].
5. In the course of hearing, counsel for the petitioner has, in fact, also placed before us, a hard copy of the e-mail dated 14.03.2023.
6. Mr Prashant Meherchandani, learned senior standing counsel who appears on behalf of the respondent/revenue says that, perhaps, the best way forward would be to remand the matter.
7. Accordingly, the impugned order dated 27.03.2023 passed under Section 148A(d) of the Act is set aside. Liberty is, however, given to the AO to pass a fresh order, after according a personal hearing to the petitioner and/or his authorised representative. The AO will also take into account the reply filed by the petitioner. Needless to add, the AO will pass a speaking order; a copy of which will be furnished to the petitioner.
8. The Registry will scan and upload the e-mail dated 14.03.2023, so that it remains embedded in the case file.
9. The writ petition is disposed of in the aforesaid terms.
10. Consequently, pending application shall stand closed.
11. Parties will act based on the digitally signed copy of the order.
