Wtax/725/2022 Of M/S. Kanti Kaushik Huf v. Income Tax Officer, Ward-2(1)(1) Ghaziabad And Another

Court No. - 3Case :- WRIT TAX No. - 725 of 2022Petitioner :- M/S. Kanti Kaushik HufRespondent :- Income Tax Officer, Ward-2(1)(1) Ghaziabad And AnotherCounsel for Petitioner :- Anjana SinghCounsel for Respondent :- Gaurav Mahajan Hon'ble Surya Prakash Kesarwani,J.Hon'ble Jayant Banerji,J. Heard Sri K.C. Kaushik along with Anjana Singh, learned counsel for the petitioner and SriGaurav Mahajan, learned senior standing counsel for the respondent- Income TaxDepartment. This writ petition has been filed praying for the following relief:- "A. issue a writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ,order or direction under Article 226 of the Constitution of India calling for the records of thePetitioner's case and, after examining the legality and validity of the impugned DIN & Notice No.dated ITBA/AST/S/14_1/2021-22/1042206225(1) dated 31.03.2022 for A.Y.- 2018-19 issued by theRespondent No.1 (Assessing officer) under section 148 of the Income Tax Act, 1961 (ANNEXURENo.12) and the impugned order No.ITBA/AST/F/ 148A/ 2021-22 /1042197605(1) dated31.03.2022 for A.Y.-2018-19 passed by the Respondent No.1 (Assessing Officer) under clause (d)of the Section 148A of the Income Tax Act, 1961 for A.Y.- 2018-19 (ANNEXURE No.13), quashand set aside the same; and/or, B. quashing the proceedings initiated vide impugned notice dated 31.03.2022 issued U/s. 148 ofthe I.T. Act; and/or; C. quashing prior approval of the PCIT, Ghaziabad (Respondent No.2) accorded on 31.03.2022vide Reference No.100000028882384; and/or; D. Issue any other writ order or direction which this Hon'ble Court may deem fit and proper in thecircumstances of the case; and/ or;" As per notice dated 22.03.2022 under Section 148A(b) of the Income Tax Act, 1961, theDepartment has an information from JDIT (OSD) (Inv.) Unit-II, Ghaziabad through insightportal that the petitioner assessee has unexplained credits to the tune of Rs.10,32,97,235/-during the Financial Year 2017-18 relevant to the Assessment Year 2018-19. The petitionersubmitted reply to the aforesaid notice and along with the reply, he filed several documentsincluding purchase and sale for the Financial Year 2016-17 and 2017-18. However, therespondent No.1 without considering the reply and even without noticing that details ofpurchase and sales have been filed by the petitioner, passed the impugned order dated31.03.2022 under Section 148A(d) of the Act, 1961 for the Assessment Year 2018-19. Themanner in which the respondent No.1 has passed the impugned order shows that theopportunity of hearing under Section 148A of the Act, 1961 mandatorily to be provided as perlegislative mandate, has been rendered as an empty formality. Therefore, the impugned order dated 31.03.2022 under Section 148A(d) of the Act, 1961 forthe Assessment Year 2018-19 cannot be sustained and is hereby quashed. Matter is remittedback to the respondent No.1 to pass an order afresh in accordance with law considering thereply of the petitioner and after affording reasonable opportunity of hearing to him. The writ petition is allowed to the extent indicated above. Order Date :- 26.5.2022NLY