QUALITY MULTIMART PRIVATE LIMITED vs. INCOME TAX OFFICER

Facts

The petitioner, Quality Multimart Private Limited, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The petitioner's grievance was that the notice issued under Section 148A(b) of the Act was not accompanied by a summary of the information and the relevant portion, as mandated by the Department's guidelines dated 01.06.2022 for issuing notices under Section 148. The respondent (Income Tax Officer) contended that the notice under Section 148A(b) was issued along with Annexure-A specifying the reasons. The High Court perused the pleadings and found that while reasons were supplied, the summary of material and relevant portions were not.

Held

The Tribunal held that the order under Section 148A(d) of the Income Tax Act, 1961, was not in compliance with the law. The Court found that although reasons were supplied with the notice under Section 148A(b), the summary of the material and the relevant portion were not provided. This contravened the guidelines issued by the Department. The Tribunal relied on its previous decision in DBCWP No.14414/2022 (R.K. Buildcreations Private Limited Vs. The Income Tax Officer) dated 08.02.2024, which also dealt with the provisions of Section 148A and departmental guidelines. Consequently, the order under Section 148A(d) was quashed, and the matter was remitted back to the respondent to proceed in accordance with law after supplying the requisite information as contemplated in the departmental guidelines. The writ petition was allowed.

Key Issues

1. Whether the notice issued under Section 148A(b) of the Income Tax Act, 1961, was compliant with the guidelines dated 01.06.2022 issued by the Department, specifically regarding the supply of a summary of information and relevant portions, turning on the interpretation of Section 148A. Assessee's Contention: The petitioner argued that the notice under Section 148A(b) was issued without supplying a summary of the information and the relevant portion, violating the Department's own guidelines dated 01.06.2022 for issuing notices under Section 148. Revenue's Contention: The respondent submitted that the notice under Section 148A(b) was issued along with Annexure-A, which specified the reasons.