Passing of order u/s. 148A(d) without granting adjournment for furnishing reply is untenable

By POONAM GANDHI Income Tax Judiciary April 3, 2025

TaxGuru Citation: 2025 taxguru.in 2409
Case Name: Pratul Krishnakant Shroff Vs DCIT (Gujarat High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Gujarat High Court

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Pratul Krishnakant Shroff Vs DCIT (Gujarat High Court)

Gujarat High Court held that passing of order u/s. 148A(d) of the Income Tax Act without considering reply filed by the petitioner by not granting adjournment time as prescribed u/s. 148A(b). Thus, order quashed and matter remanded back.

Facts- By this petition under Article 226 of the Constitution of India, the petitioner has challenged the orders dated 30^th March, 2022 passed under Section 148A(b) of the Act, 1961 and the notice dated 31.3.2022 issued under Section 148 of the Act on the ground that the reply filed by the petitioner is not considered while passing the impugned order holding that it is a fit case to reopen the assessment for the Assessment Year 2018-19.

Conclusion- Held that the impugned order under Section 148A(d) of the Act was passed on 30^th March, 2022 though, the petitioner has filed the reply dated 22^nd March, 2022. Thus, there is a clear breach of principle of natural justice on the part of the respondent- Assessing Officer for not considering the reply filed by the petitioner on the ground that the petitioner did not file the reply within the stipulated time e. on or before 15^th March, 2022. On perusal of the provision of under Section 148A(b) of the Act as it existed at the relevant point of time, the respondent -Assessing Officer is required to grant time to the petitioner to file the reply if the petitioner prays for the adjournment. Thus, the impugned order passed under Section 148A(d) of the Act dated 30^th March, 2022 and the notice issued under Section 148 of the Act dated 31^st March, 2022 are hereby quashed and set aside. The matter is remanded back to the Assessing Officer to furnish the information in his possession which is the basis for issuance of the notice under Section 148A(b) of the Act so as to enable the petitioner to file further reply if required, in addition to the reply filed on 22^nd March, 2022. After considering the reply dated 22^nd March, 2022 and further reply which may be filed by the petitioner on receipt of the information from the respondent – Assessing Officer, the fresh denovo order under Section 148A(d) of the Act shall be passed in accordance with law.