GILANI INFRA PRIVATE LIMITED vs. ASSI. COMMISSIONER OF INCOME TAX CIRCLE-2 MUMBAI AND ANR

PDF · subscribers
WP/8049/2023HC BombayHCBM01021132202304 July 2023Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the Respondent No.1 had incorrectly recorded that the petitioner had not responded to the notice. Based on the petition and annexed documents, including the department's email confirming receipt of the reply, the court found the recording to be erroneous. Consequently, the court quashed and set aside the impugned order dated April 6, 2023, passed under Section 148A(d) of the Act, and the notice under Section 148 of the Act. The court directed Respondent No.1 to consider the reply filed by the petitioner and pass a fresh order in accordance with law. All rights and contentions of the petitioner, including the issue of limitation, were kept open. The court further mandated that before passing any order, the petitioner must be given a personal hearing with at least seven working days' advance notice. The Assessing Officer is also required to provide a list of any judgments or orders they intend to rely upon in advance of the hearing. Any subsequent order must be reasoned and detailed, addressing all submissions made by the petitioner.

What were the facts?

The petitioner, Gilani Infra Private Limited, filed a writ petition challenging a notice dated March 30, 2023, issued under Section 148A(b) of the Income Tax Act, 1961, and an order dated April 6, 2023, passed under Section 148A(d) of the Act for Assessment Year 2019-20. The petitioner's primary grievance was that the order under Section 148A(d) incorrectly stated that the assessee had not responded to the show cause notice. The petitioner claimed to have submitted a reply on April 6, 2023, which was confirmed by an email from the department at 4:14:50 p.m. IST on the same day. The impugned order was passed at 6:17 p.m. on April 6, 2023, followed by a notice under Section 148 of the Act at 6:38 p.m. The disputed income assessment was Rs. 2,72,62,525/-.

What were the issues?

1. Whether the order dated April 6, 2023, passed under Section 148A(d) of the Income Tax Act, 1961, incorrectly recorded that the assessee had not responded to the show cause notice issued under Section 148A(b) of the Act. Assessee's Contention: The petitioner argued that they had indeed responded to the notice under Section 148A(b) by submitting a reply on April 6, 2023, and that the department's email confirmed the receipt of this reply. Therefore, the finding in the order dated April 6, 2023, that no response was filed was factually incorrect. Revenue's Contention: The judgment does not record any specific contentions made by the revenue regarding the assessee's response or lack thereof. The revenue was represented by counsel, but their arguments on this specific point are not detailed in the provided text.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

1/3 912-WP-8049-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 8049 OF 2023 Gilani Infra Private Limited ….Petitioner V/s. Assistant Commissioner of Income Tax, Circle – 2(2), Mumbai and Anr. …Respondents ---- Mr. Shreyas Shrivastava a/w Mr. Tanmay Bidkar for Petitioner. Mr. Akhileshwar Sharma a/w Ms. Shilpa Goel for Respondents. ---- CORAM : K.R. SHRIRAM & FIRDOSH P. POONIWALLA, JJ.

DATED : 4th JULY 2023 P.C. : 1. Petitioner is impugning a notice dated 30th March 2023 issued under Section 148A(b) of the Income Tax Act, 1961 (the Act) and the order dated 6th April 2023 passed under Section 148A(d) of the Act for Assessment Year 2019-20. Though various grounds have been raised in the petition, the primary reason petitioner is aggrieved is that in the order dated 6th April 2023 under Section 148A(d) of the Act, Respondent No.1 has incorrectly recorded that assessee has neither responded nor submitted any reply to the Show Cause Notice. Respondent No.1 has thereafter proceeded to hold that there has been an escapement of income in the sum of Rs.2,72,62,525/-. 2. Petitioner had received a notice dated 30th March 2023 under Section 148A(b) of the Act calling upon petitioner to submit a reply on or Purti Parab PURTI PRASAD PARAB Digitally signed by PURTI PRASAD PARAB Date: 2023.07.07 15:45:33 +0530

2/3 912-WP-8049-2023.doc before 6th April 2023. The notice had been digitally signed on 30th March 2023, the time is not clear. On 6th April 2023 petitioner replied to the notice giving all details. Petitioner also received an E-mail from the department at 04:14:50 p.m. IST on 6th April 2023 confirming receipt of a reply from petitioner. The impugned order came to be passed on 6th April 2023 at 6.17 p.m. incorrectly recording that petitioner has not responded or submitted any reply to the Show Cause Notice. This was followed by a notice under Section 148 of the Act also dated 6th April 2023 issued at 6.38 p.m. In our view having considered the petition as well as the documents annexed to the petition, Respondent No.1 has incorrectly recorded that petitioner has not responded to the notice. 3. In the circumstances, we quash and set aside the impugned order dated 6th April 2023 passed under Section 148A(d) of the Act and the notice under Section 148 of the Act. Respondent No.1 shall consider the reply filed by petitioner and may pass such order as he deems fit in accordance with law. All rights and contentions of petitioner is kept open including the issue of limitation. 4. Before passing any order, petitioner shall be given a personal hearing, notice whereof shall be communicated atleast seven working days in advance. If the Assessing Officer is going to rely on any judgment or any order of the Tribunal or Court, list thereof shall be provided to petitioner in Purti Parab

3/3 912-WP-8049-2023.doc advance alongwith notice of personal hearing so that petitioner will be able to deal with the same/distinguish the same during the personal hearing. Any order passed shall be a reasoned and detailed order dealing with all submissions of petitioner. 5. Petition disposed. (FIRDOSH P. POONIWALLA, J.) (K.R. SHRIRAM, J.) Purti Parab

More judgments on Section 148A

All 3,543 judgments and leading authorities on Section 148A →

Recent GST High Court judgments

Search GST case law →