August 20, 2026 AD 10 Ct. No.10 SG WPA 5746 of 2023 CRM Ispat Private Limited vs Income Tax Officer, Ward No.3(3), Kolkata and others Mr. Avra Mazumder Ms. Alisha Das Ms. Rupomita Ghosh Ms. Vedika Agarwal … for the petitioner Mr. Prithu Dudhoria Mr. Amit Sharma … for the respondents 1. The present Writ Petition has been filed challenging inter alia the legality, validity and propriety of the Order dated 30.07.2022 passed under Section 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as the said Act) for the Assessment Year 2014-15 alongwith the consequential notice. 2. It is submitted that an assessment order was already passed under Section 143(3) of the said Act. On 04.08.2016 the Assessing Officer assessed the income of the assessee as per the return of income and separately initiated penalty proceedings by issuing notice under Section 274 read with Section 271 of the said Act for furnishing in accurate particular to the tune of Rs. 2,02,03,265/-. 3. Thereafter, a Notice under Section 148 of the said Act was issued for the relevant Assessment Year 2014-15. 2 4. Pursuant to the judgement of the Hon’ble Supreme Court in Union of India and Others Vs. Ashish Agarwal and Ors., a notice under Section 148A(b) of the said Act was issued on 02.05.2022 on the basis of information indicating escapement of income amounting to Rs. 50,00,056/-. 5. The petitioner filed a detailed reply to the said notice. However, without considering the same, the impugned order under Section 148A(d) dated 30.07.2022 was passed. 6. The Learned Counsel appearing for the petitioner submits that the impugned order suffers from gross irregularity, perversity and non-application of mind. It is submitted that the Assessing officer failed to consider the comprehensive reply filed by the petitioner to the notice under Section 148A(b) and passed a cryptic order without dealing the objections raised. 7. It is further submitted that the order has been passed in excess of jurisdiction and is contrary to the principles of natural justice. The finding, that income chargeable to tax to the tune of Rs. 50,00,056/- has escaped assessment, has been arrived at without any basis. 8. It is prayed that the impugned order dated 30.07.2022 passed under Section 148A(d) along with the consequential notice be quashed and set aside. 3 9. The Learned Counsel appearing on behalf of the respondent, the Income Tax Authorities vehemently oppose the submissions made on behalf of the petitioner. 10. It is submitted that the order passed under Section 148A(d) has been passed on the basis of tangible informations received by the Department indicating that an amount of Rs. 50,00,056/- had escaped assessment. 11. It is contended that the petitioner is the beneficiary of the said amount, which was routed through various entities by way of layering of funds in the form of bogus unsecured loans / share premium. The said amount constitutes undisclosed income of the beneficiary. It is submitted that the order passed by the Assessing Officer is in accordance with law and does not suffer from any illegality or perversity. 12. Hence, the Writ Petition is liable to be dismissed. 13. This Court has heard the Learned Counsel of both parties and has perused the materials on record. The core issue before this Court is whether the order passed under Section 148A(d) of the said Act is sustainable in law when the petitioner has filed a detailed reply to the Notice under Section 148A(b) of the said Act. 14. Upon perusal of the impugned Order dated 30.07.2022 this Court finds that the Assessing Officer has passed a cryptic and non-speaking order. The specific contention and documents filed by the petitioner in 4 response to the Notice under Section 148A(b) has not been dealt with or considered. 15. It is well settled that any order having civil consequences must be a speaking and reasoned order. The failure to consider the reply and to assign reason for rejecting the same, vitiates the impugned order. 16. This Court is therefore, of the view that the impugned order suffers from gross irregularity and infirmity and cannot be sustained in the eye of the law. 17. In view of the observations the Writ Petition is allowed and disposed of with the following directions:- a. The Order dated 30.07.2022 passed under Section 148A(d) of the said Act along with the consequential notice for the Assessment Year 2014-15 is hereby quashed and set aside. b. Liberty is granted to the respondent to proceed afresh in accordance with law. The petitioner is directed to file a comprehensive and detailed reply to the Notice under Section 148A(b) of the said Act within four weeks from date. c. The Assessing Officer shall consider the said reply and pass a speaking and reasoned order within two weeks from the date of reply, after affording an opportunity of personal hearing to the petitioner. 5 d. The decision shall be communicated to the petitioner within one week thereafter. e. The petitioner shall not seek any unnecessary adjournments. The Assessing Officer shall decide the matter independently without being influenced by any observations made in this order. 18. If any documents are required for proper adjudication, the same shall be provided to the petitioner to ensure an effective and meaningful hearing. 19. Since affidavits have not been filed despite opportunities, the allegations made in the Writ Petition are deemed to have been derived and not admitted. 20. Urgent Photostat certified copy of this order, if applied for, be supplied to the parties upon compliance with requisite formalities. [ Smita Das De, J. ]