The AO had sought to reopen the assessment in respect of the increase in liability to pay Works Contract Act noted by him as income escaping assessment. The assessee replied that no deduction was claimed in respect of impugned liability. However, the AO passed order u/s. 148A (d) of the Act without dealing with this submission. Court held, that the Assessing Officer had not considered the crucial fact that the assessee had never claimed deduction concerning unpaid taxes. The order passed under section 148A(d) was set aside. The Assessing Officer was to accord opportunity of personal hearing to the assessee and carry out a de novo enquiry (AY. 2016-17)
Alankar Apartments (P.) Ltd. v. DCIT/(2023) 151 taxmann.com 67 / (2024) 461 ITR 53 (Delhi)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Matter restored to the AO as the main contention of the assessee that it had not claimed any deduction for such liability was not considered while passing order u/s. 148A (d) of the Act. [S. 148A(b), 148A(d), Art. 226]