The High Court has set aside a reassessment order passed by the Income Tax Department on procedural grounds, reaffirming the mandatory requirement of compliance under Section 148A of the Income Tax Act, 1961.
Background
The petitioner had challenged an order dated 28.11.2024 issued by Respondent No. 4 under Sections 147 read with 144 and 144B of the Income Tax Act. The crux of the petitioner’s argument was that the reassessment proceedings were conducted without serving the mandatory notice under Section 148A, rendering the entire process legally untenable.
Legal Submission
Counsel for the petitioner argued that as per the amended Income Tax Act, before initiating reassessment under Section 147, the department must issue a notice under Section 148A, giving the assessee an opportunity to respond. This safeguard is crucial for ensuring compliance with the principles of natural justice.
Interestingly, counsel for the Income Tax Department admitted—on instructions—that no such notice had been served on the petitioner before issuing the impugned order.
Court’s Observation and Verdict
After hearing both parties, the Court held that failure to serve notice under Section 148A vitiates the entire reassessment proceedings. Accordingly, the Court:
Set aside the impugned order dated 28.11.2024.
Remanded the matter back to Respondent No. 4 for fresh consideration.
Directed the respondent to issue a proper notice under Section 148A to the petitioner at the address provided in the writ petition before taking any further action.
Income Tax Case Law Anvari Khatun versus The Principal Commissioner of Income Tax
Citation-2025 TAXONATION 793 (JHARKHAND) (Click here ot read full judgement)
SUBSCRIBE GST & INCOME TAX E-LIBRARY (INDIA'S HIGHEST CASE LAW DATA)
FOR MORE UPDATE ON GST/ IT JOIN OUR FREE WHATSAPP GROUP BY CLICKING ON THIS LINK https://chat.whatsapp.com/C8VB6F6VHme3A061UDQKhj
