28 June 2023
The A.O. has digitally signed the order under section "148A" on 30/03/2022 at 06:30 PM. and the notice issued under section "148" has been digitally signed on 30/03/2022 at 01:30 PM.
That means, the notice u/s 148 was issued prior to order u/s 148A.
Can we challenge the validity of notice under section 148A/148 and then order under section 147.
09 July 2024
In the scenario you've described, where the notice under section 148 was digitally signed at 1:30 PM on 30/03/2022, and the order under section 148A was digitally signed later at 6:30 PM on the same day, there appears to be a sequencing issue. Here are some considerations regarding the validity and possible challenges:
### Understanding the Issue:
1. **Sequence of Events:** - Normally, a notice under section 148 (for reopening assessment) precedes the subsequent order or action under section 148A (for assessment or reassessment). This is because the notice informs the taxpayer of the intention to reopen the assessment.
2. **Validity Concerns:** - If the order under section 148A (assessment or reassessment order) was signed before or very close to the notice under section 148, it raises questions about the procedural adherence to the sequence mandated by the law.
### Possible Actions:
1. **Consultation with Legal Expert:** - It's crucial to consult with a tax advisor or legal expert specializing in income tax matters. They can review the specifics of the notice and order timelines and assess whether there is a procedural irregularity.
2. **Review Relevant Laws and Rules:** - Review the provisions of the Income Tax Act related to issuance of notices under section 148 and orders under section 148A. Understand the prescribed procedures and timelines.
3. **Challenging the Validity:** - If it is determined that there is a procedural lapse or irregularity (such as the notice not preceding the order), your legal advisor may recommend challenging the validity of the notice or the subsequent order.
4. **Drafting Response:** - Based on the advice received, prepare a response to the notice or order. This response should outline any concerns about the procedural sequence and provide relevant legal arguments and supporting evidence.
5. **Legal Remedies:** - Depending on the advice, legal remedies could involve filing an objection or appeal with the appropriate income tax authorities or appellate tribunal. These steps aim to rectify any procedural errors or to challenge the assessment/reassessment order based on improper issuance of the notice.
### Conclusion:
The sequencing of notice and order under sections 148 and 148A is critical for procedural compliance in income tax assessments. If there is indeed a discrepancy where the order was signed before or closely with the notice, consulting with a legal expert is advisable to explore your options for challenging the validity or addressing any procedural irregularity effectively. This approach can help ensure compliance with legal requirements and protect your rights as a taxpayer.
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