Facts of the Case

The petitioner, Anmol Tradex Private Limited, filed a writ petition challenging two show-cause notices dated 31.03.2025 and 25.06.2025 issued under Section 148A(1) of the Income-tax Act, 1961, the consequential order dated 28.06.2025 passed under Section 148A(3), and the notice dated 28.06.2025 issued under Section 148.

Pursuant to the notice dated 25.06.2025, the petitioner filed replies on 15.04.2025, 24.06.2025, and a further detailed reply on 28.06.2025. The Assessing Officer passed the order under Section 148A(3) on 28.06.2025 itself.

Issues Involved

Whether an order passed under Section 148A(3) without considering a reply filed by the assessee on the same day violates principles of natural justice, and whether such an order and the consequential notice under Section 148 can be sustained.

Petitioner’s Arguments

The petitioner contended that while passing the order under Section 148A(3), the Assessing Officer failed to consider the reply dated 28.06.2025, which was filed pursuant to the show-cause notice dated 25.06.2025. It was argued that passing the order on the same day without considering the latest reply amounted to violation of principles of natural justice and rendered the reassessment proceedings invalid.

Respondent’s Arguments

The Revenue defended the proceedings but did not dispute that the order dated 28.06.2025 referred only to the petitioner’s replies dated 15.04.2025 and 24.06.2025 and did not advert to the reply filed on 28.06.2025.

Court Order / Findings

The Delhi High Court, upon perusal of the order passed under Section 148A(3), specifically noted that while the order referred to replies dated 15.04.2025 and 24.06.2025, it did not consider the reply dated 28.06.2025. The Court held that this omission constituted a clear infirmity.

In view of the non-consideration of the reply filed on the same day, the Court set aside the order dated 28.06.2025 passed under Section 148A(3) and the consequential notice dated 28.06.2025 issued under Section 148. The matter was remanded to the Assessing Officer with directions to consider all replies filed by the petitioner and to pass a fresh, reasoned and speaking order.

Important Clarification

The Court clarified that an order under Section 148A(3) must be a reasoned and speaking order after due consideration of all replies filed by the assessee. Failure to consider a reply on record vitiates the assumption of jurisdiction for reassessment.

Final Outcome

The writ petition was allowed. The Delhi High Court set aside the order dated 28.06.2025 passed under Section 148A(3) and the notice dated 28.06.2025 issued under Section 148, and remanded the matter to the Assessing Officer to pass a fresh, reasoned order after considering the petitioner’s replies dated 15.04.2025, 24.06.2025, and 28.06.2025 within six weeks. The petition and the accompanying application were disposed of accordingly.

Link to download order- https://www.mytaxexpert.co.in/uploads/1769682543_ANMOLTRADEXPRIVATELIMITEDVsASSISTANTCOMMISSIONEROFINCOMETAXCENTRALCIRCLE25DELHI.pdf

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