RAMAKANT SHARMA, S/O LATE SHRI RAM SHARMA vs. INCOME TAX OFFICER

Facts

The petitioner, Ramakant Sharma, filed a writ petition challenging an order dated 30.03.2022 passed under Section 148-A(d) of the Income Tax Act, 1961. The assessment year in question is 2015-16. Proceedings were initiated by a notice dated 21.03.2022, requiring a response by 28.03.2022. The petitioner claims to have filed an online reply on 28.03.2022. However, the impugned order stated that no reply was filed. The revenue contended that while the reply was filed on 28.03.2022, the supporting documents were uploaded only on 29.03.2022.

Held

The High Court held that it is an undisputed fact that the petitioner responded to the show cause notice on 28.03.2022, but this reply was not considered. The Court reasoned that even if there was a deficiency, such as the annexures not being uploaded, an opportunity should have been granted to the petitioner to rectify it, or the reply filed should have been considered. Consequently, the impugned order passed under Section 148-A(d) was set aside. The matter was remitted back to Respondent No. 2 to decide the objections afresh in accordance with the law. The interim protection granted to the petitioner during the pendency of the petition was directed to continue until a fresh order under Section 148-A(d) is passed.

Key Issues

1. Whether the order passed under Section 148-A(d) of the Income Tax Act, 1961, is valid when the petitioner's reply, filed on the due date, was allegedly not considered by the Assessing Officer. Assessee's Contention: The petitioner argued that their reply dated 28.03.2022 was not considered by the respondent authorities. Revenue's Contention: The respondents defended the impugned order, stating that although the reply was filed on 28.03.2022, the accompanying documents were uploaded on 29.03.2022, implying a deficiency in the filing.