A division bench of the Delhi High Court comprising Justice Manmohan and Justice Manmeet Pritam Singh Arorahas quashed a re-assessment order passed under section 148A(d) of the Income Tax Act, 1961 observing that the same was passed in great haste without granting reasonable time to file a reply to the assessee amounting to violation of natural justice principles.
The Petitioner, Mr. Hardev Sigh challenged the order seeking a direction restraining the Respondents from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the said purported order under section 148A(d) of the Act and notice under Section 148 of the Act and/or in any proceedings initiated.
After hearing arguments from both sides, the Court held that the impugned order under Section 148A(d) of the Act has been passed in great haste and in gross violation of principle of natural justice as the Petitioner was not given reasonable time to file a reply.
“Consequently, the impugned order under Section 148A(d) of the Act and impugned notice under Section 148 of the Act are quashed and the matter is remanded back to the Assessing Officer with a direction to decide the notice under Section 148A(b) of the Act by passing a reasoned order in accordance with law, after taking into account the reply filed by the Petitioner/Assessee. With the aforesaid directions, present writ petition along with pending applications stand disposed of,” the Court concluded.
Mr.Nitin Gulati, Advocate appeared for the assessee.
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