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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Aten Capital Private Limited – Appellant
Versus
Assistant Commissioner of Income Tax, – Respondent
JUDGMENT
Manmohan, J. (Oral):
1. Present writ petition has been filed challenging the order passed under Section 148A(d) and the notice issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as `the Act') both dated 5th April, 2022.
2. Learned counsel for the petitioner states that the impugned order has been passed in complete violation of the principles of natural justice as well as the statutory mandate incorporated in Section 148A(c) and (d) inasmuch as the reply dated 4th April, 2022 furnished by the petitioner was not taken into consideration and an adverse inference was wrongly drawn against the petitioner by observing in the impugned order, `the assessee was requested to file reply to the above show cause notice on or before 04.04.2022. However, till date no response has been received from the assessee against the opportunity provided u/s l48A(b) of the Income tax Act, l961 which establishes that assessee has no explanation for issue discussed above.....'.
3. He submits that the Show Cause Notice dated 27th March, 2022 has been issued in violation of provisions of the Act as the same has been issued for verification purpose. In support of his c
Section 148A advisedly uses the expression ‘enquiry’.
Section 148A(c) has been violated as it casts a duty on the Assessing Officer, by using the expression ‘shall’, to consider the reply of the Petitioner/assessee in response to notice under Section 14....
The court established that failing to consider a taxpayer's submission violates procedural fairness in tax assessments, necessitating the annulment of prior notices.
Reassessing without a hearing contravenes natural justice principles; proceedings must ensure opportunities for taxpayer representation.
The Income Tax Officer failed to comply with mandatory response time requirements, violating the petitioner's right to due process under the Income Tax Act.
Petitioners are entitled to adequate time to respond to tax notices, and minimal delays in requests for adjournments, especially for residents abroad, should not result in dismissal of rights.
Assessing Officers must consider submissions from assessee under Section 148A(d) before issuing notices under Section 148 of the Income Tax Act; failing to do so invalidates the notice.
Show cause notices challenging tax claims must adhere to natural justice principles, and IGST Refund claims do not qualify as chargeable income under income tax laws.
The Assessing Officer must consider the taxpayer's reply before issuing orders under the Income Tax Act, ensuring compliance with principles of natural justice.
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