Notice u/s 148A(b) received on Date of Reassessment: Delhi HC directs Re Adjudication

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The Delhi High Court directed re-adjudication since the notice under section 148A(b) of the Income Tax Act, 1961 was received on the date of reassessment.

Premium Estates Private Limited, the petitioner the order dated 31.03.2023 passed under Section 148A(d) of the Income Tax Act, 1961. The challenge is also laid to a consequential notice of even date, i.e., 31.03.2023 issued under Section 148 of the Act. 

As per section 148A of the Income Tax Act, 1961,  the Assessing Officer (AO) issue a notice to a person who has failed to furnish a return of income, report or statement of financial transaction.

It was submitted that no notice was issued to the petitioner under Section 148A(b) of the Income Tax Act, 1961.  It was stated that the said notice under Section 148A(b) of the Income Tax Act, which is dated 10.03.2023, was received by the petitioner only on the date when the order under Section 148A(d) of the 1961 Act was passed, i.e., 31.03.2023.

It is submitted by the counsel for the petitioner that no real-time alert was issued via email, in terms of Rule 127 of the Income Tax Rules, 1962. Ms Pethia stated that the best way forward, in this case, would be to set aside the impugned order with liberty to the Assessing Officer (AO) to carry out the exercise de novo.

A two-judge bench of Justice Rajiv Shakdher and Justice Girish Kathpalia set aside the impugned order passed under Section 148A(d) and the consequential notice issued under Section 148 of the Income Tax Act. 

The petitioner was directed to file a reply to the notice dated 10.03.2023 issued under Section 148A(b) of the Act within three (3) weeks commencing from today. To Read the full text of the Order CLICK HERE

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Counsel for Appellant:   Mr Sumit K. Batra, Mr Naunidh S. Arora and Mr Manish Khurana

Counsel for Respondent:   Ms Anuja Pethia and Mr Rishabh Nangia

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