In this case the assessee had submitted a reply to the notice under clause (b) of Section of Section 148A. However, the impugned order under Section 148A(d) had been passed on the
ground that no reply has been submitted.

The application for rectification of the mistake submitted by the petitioner u/s 154 had been rejected on the ground that no reply was received.

The revenue filed an affidavit wherein it was mentioned That since the reply dated 29.03.2022 of the assessee was not reflecting in the case history/notings maintained digitally on the ITBA Portal of the petitioner assessee as accessed by the AO on the date of passing of the order he passed the order u/s. 148A(d) of the Act.

The Hon. Court Observed:

1.it is undisputed that the impugned order has been passed by the respondents arbitrarily and in gross violation of the principles of natural justice.

2.the impugned order u/s. 148A(d) and notice under Section 148 of the Act, 1961, can not be sustained and are hereby quashed.

3.We are frequently coming across cases where Income Tax Authorities are giving complete go by to the principles of natural justice.

4.The excuse orally being set up usually by the departmental counsels is that there is some problem in the computerisation system which is solely controlled by the CBDT and they can not, at their own, correct the system.

5.the system has been introduced and is being implemented by the respondents and, therefore, it is their primary duty to immediately remove short comings, if any, in the system.

6.For own wrongs of the respondents, the assessee can not be allowed to suffer and put to harassment.

7.Prevailing state of affairs clearly reflects that in the absence of any effective system of accountability of the erring officers, the harassment of the assessees and breach of principles of natural justice by the Officers is resulting in uncontrolled situation.

8. The practice of frequently violating principles of natural justice, non consideration of
replies of assessees under one pretext or the other or rejecting it with one or two lines orders without recording reasons for rejection, is gradually increasing which needs to be taken care of immediately by the respondents at the highest level, otherwise prevailing situation of arbitrary approach and breach of principles of natural justice may not only adversely affect the assessees who pay revenue to the Government, but
also may develop a perception amongst people/assessees that it is difficult to get justice from the authorities in statutory proceedings.