JINDAL FORGINGS Vs. INCOME TAX DEPARTMENT

JUDGEMENT

(1.) The instant application has been preferred by the petitioner praying therein for quashing of the order as contained in letter dtd. 31/3/2022 (Annexure-3) passed under Sec. 148A (d) of the Income Tax Act, 1961 (hereinafter referred to as 'Act') whereby it has been ordered that the case of the assessee is a fit case for issuance of notice under Sec. 148 of the Act for the Assessment Year 2018-19. The petitioner has further prayed for quashing of the entire reassessment proceeding for the Assessment Year 2018-19 including the notice under Sec. 148A(b) of the Act dtd. 25/3/2022 (Annexure-2) and also notice under Sec. 148 of the Act dtd. 31/3/2022 (Annexure-4).

(2.) The facts of the case lie in a narrow compass. The petitioner had filed its return of income for the Assessment Year 2018-19, on 25/9/2018. The books of the petitioner were duly audited as per Sec. 44AB of the Act. On 25/3/2022, a notice under clause (b) of Sec. 148A of the Act was issued to the petitioner calling upon the petitioner to show- cause as to why notice under Sec. 148 of the Act be not issued for the reasons stated in annexure to the notice dtd. 25/3/2022. In this notice the petitioner was directed to ensure compliance on or before 28/3/2022. Even before lapse of seven days' time from 25/3/2022, on 31/3/2022 itself the Assessing Officer passed an order under Sec. 148A(d) of the Act whereby inter-alia it has been ordered that the case of the Assessee is a fit case for issuance of notice under Sec. 148 of the Act for the Assessment Year 2018-19 and on 31/3/2022 itself notice has been issued.

(3.) Mr. Kumar Vaibhav, learned counsel for the petitioner submits that the Assessing Officer has erred in law and has acted in contravention of sec. 148A of the Act. The Assessing Officer has totally ignored the timelines prescribed by the Statute, which is in complete violation of the letter and spirit of the new regime for reassessment proceeding introduced by the Finance Act, 2021. Sec. 148A(b) lays down that the Assessee is to be afforded an opportunity to show cause within such time as specified 'being not less than seven days'.