AO directed to pass order u/s 148A(d) after considering belated reply filed by assessee after supply of legible copies of annexure to SCN u/s 148A(b)
In a recent judgment, Hon’ble High Court of Madhya Pradesh has directed the Assessing Officer (AO) to pass order u/s 148A(d) only after considering belated reply filed after legible copies of annexure to SCN u/s 148A(b) were made available to assessee
ABCAUS Case Law Citation:
ABCAUS 4120 (2024) (06) HC
In the instant case, the assessee had filed a Writ Petition challenged the order passed u/s 148A(d) and Notice issued u/s 148 of the Income Tax Act, 1961 (the Act). The fundamental ground of challenge to the aforesaid order and notice was non consideration of the reply filed by the petitioner before passing the order u/s 148A(d) of the Act.
Finance Act, 2021 inter alia inserted Section 148A in the Act affording additional opportunity of being heard besides the one prescribed in Section 148 of the Act in cases pertaining to income escaping assessment. The assessee was issued a show-cause notice u/s. 148 and notice u/s 142(1) of the unamended Act.
Subsequently the Apex Court directed for treating all Section 148 notices issued under unamended Act, to be notices issued u/s 148A(d) of amended Act. In due deference of order of Apex Court, fresh show-cause notice u/s 148A(b) was issued by Revenue asking petitioner to respond within two weeks.
Petitioner submitted reply to show-cause notice seeking supply of legible copies since the material supplied alongwith show-cause notice was illegible. Petitioner submitted the reply which was beyond the two week’s time originally given in SCN only after Revenue supplied legible copies sought by the petitioner.
However, Revenue passed the order u/s 148A(d) of the Act observing that no reply to show-cause notice had been filed by petitioner. Notice u/s 148 of the Act was also issued to petitioner.
The Hon’ble High Court observed that it was not disputed that material supplied to petitioner alongwith the show-cause notice was not legible, as it was admitted by the Revenue that legible copies in support of show-cause notice were supplied to petitioner. However, the bone of contention between the rival parties was that reply to show-cause notice submitted by petitioner was not considered before passing the impugned order u/s 148A(d) of the Act. and notice u/s.148 was also issued on the very same day due to time constraint.
The Petitioner contended that pursuant to receipt of legible copies he submitted reply but was denied by the Revenue by contending that neither soft nor hard copy of any reply to show-cause notice was received in the office of Revenue.
The Hon’ble High Court noted that the Assessing Officer either did not receive the reply filed by the Petitioner to show-cause notice after receiving legible copies of documents from the Revenue, or the petitioner did not successfully upload the reply on the website of Revenue.
The Hon’ble High Court directed the AO to consider the reply of petitioner to show-cause notice u/s 148A(b) submitted after receiving legible copies and on consideration if it is found that reply is satisfactory, then the Assessing Officer is directed to drop proceedings u/s.148A and recall the order u/s.148A(d) of the Act. In case, the reply to notice under Section 148A(b) is not found satisfactory, then the Assessing Officer will be well within his powers to proceed u/s.148 of the Act.
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