The court dismissed the writ petition filed by the assessee challenging the order passed under section\u00a0148A(d)\u00a0for issue of notice under section\u00a0148\u00a0for reopening the assessment on the ground that the assessee did not file its objection to the notice issued under section\u00a0148A(b)\u00a0within the time prescribed thereunder and, therefore, the court was not inclined to interfere with the order. On appeal, allowing the appeal the Court held that the Assessing Officer had acted in great haste and virtually reduced the procedure under the amended provision of the Act to a nullity. The power to reassess under section\u00a0147\u00a0was available to the authority till the year 2023 if permissible under law. The time limit for filing the reply in terms of the notice had expired on March 18, 2022 which was a public holiday and the following two days March 19, 2022 and March 20, 2022 were Saturday and Sunday. Therefore, the next working day was March 21, 2022. The reply to the show cause notice under section\u00a0148A(b)\u00a0was uploaded online by the assessee on March 21, 2022. A reasonable view ought to have been taken by the ITO and the interpretation given by the ITO was a narrow interpretation and a perverse outlook. The reply or objection had been filed online on March 21, 2022 and it was deemed that the assessee had sought for extension of time. The court was not adjudicating a public interest litigation but an aggrieved assessee was before the court. Therefore, if there were other similar cases where the Income-tax Officers had taken a perverted approach in the matter, those assessees would also be entitled to seek for legal remedy. The order passed in the writ petition was set aside. The order dated March 23, 2022 under section\u00a0148A(d)\u00a0and the notice issued under section\u00a0148\u00a0were quashed. The opportunity provided under clause (b) of section\u00a0148A\u00a0of the\u00a0Income-tax Act, 1961\u00a0should be a meaningful opportunity. The statute provides for granting the assessee time to submit a reply to the notice within seven days, but not exceeding 30 days from the date on which the notice is issued. A purposive interpretation needs to be given to the statutory provision. The matter was remanded to the Assessing Officer to consider the reply given by the assessee dated March 21, 2022 in response to the notice under section\u00a0148A(b). Court directed the respondent to pay cost of Rs. 15000, however\u00a0 on request of the Departmental counsel who has assured that he will take responsibility of conveying as to what would mean by \u201creasonable opportunity to the assessee\u201c.\u00a0 Portion of direction imposing cost on the Departmental Officer was deleted. (AY. 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Reply was uploaded on Monday immediately after public holiday and Saturday and Sunday-Order for issue of show-cause notice without considering reply-Order passed in haste reducing procedure to nullity-A purposive interpretation needs to be given to the statutory provision-Matter was remanded-Directed the respondent to pay cost of Rs. 15000, however on request of the Departmental counsel who has assured that he will take responsibility of conveying as to what would mean by \u201creasonable opportunity to the assessee\u201c-Portion of direction imposing cost on the Departmental Officer was deleted. [S. 147, 148, 148A(b), 148A(d), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32993","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8A9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=32993"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32993\/revisions"}],"predecessor-version":[{"id":39072,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32993\/revisions\/39072"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=32993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=32993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=32993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}