Facts of the Case

The petitioner, Deepak Gupta, challenged the order dated 13.06.2025 passed under Section 148A(3) of the Income-tax Act, 1961 along with the consequential notice issued under Section 148 initiating reassessment proceedings. The grievance of the petitioner was that the replies submitted in response to the show cause notice were not duly considered before passing the impugned order.

During the hearing before the High Court, the learned Senior Standing Counsel for the Revenue, on instructions, stated that it would be appropriate for the impugned order and notice to be set aside and for the matter to be remanded to the Assessing Officer to consider the replies filed by the petitioner and thereafter pass a fresh order.

Issues Involved

Whether the order passed under Section 148A(3) and the consequential notice under Section 148 could be sustained when the Revenue itself conceded that the replies of the petitioner required reconsideration, and whether the matter deserved to be remanded for fresh adjudication after granting opportunity of hearing.

Petitioner’s Arguments

The petitioner contended that the Assessing Officer failed to properly consider the replies and submissions furnished in response to the show cause notice under Section 148A. It was submitted that the impugned order was passed in violation of principles of natural justice and therefore deserved to be set aside.

Respondents’ Arguments

The Revenue, through its counsel, fairly conceded that in the interest of justice, the impugned order dated 13.06.2025 under Section 148A(3) and the notice issued under Section 148 may be set aside and the matter remanded to the Assessing Officer for fresh consideration of the petitioner’s replies and for passing a fresh order after hearing the petitioner.

Court Order / Findings

The Delhi High Court recorded the concession made on behalf of the Revenue and held that the impugned order dated 13.06.2025 passed under Section 148A(3) and the notice issued under Section 148 could not be sustained. The Court set aside both the order and the notice and remanded the matter to the Assessing Officer.

The Court directed that the Assessing Officer shall grant an opportunity of hearing to the petitioner or his authorised representative, consider the replies already filed as well as any additional documents that the petitioner may place on record, and thereafter pass a fresh order in accordance with law.

Important Clarification

The Court clarified that the entire process, including grant of hearing and passing of a fresh order by the Assessing Officer, must be completed within an outer limit of eight weeks. The petitioner was also granted liberty to submit additional documents at the time of hearing.

Final Outcome

The writ petition was disposed of. The Delhi High Court set aside the order dated 13.06.2025 passed under Section 148A(3) and the consequential notice issued under Section 148, remanded the matter to the Assessing Officer for fresh consideration after granting opportunity of hearing, and directed completion of the exercise within eight weeks. Pending applications, if any, were dismissed as infructuous.

 Link to download order- https://www.mytaxexpert.co.in/uploads/1769682314_DEEPAKGUPTAVsASSISTANTCOMMISSIONEROFINCOMETAXCIRCLE431DELHIORS..pdf

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