Allahabad High Court recently in the case of Dharmendra Kumar Singh has held that  order passed under section 148A(d) by AO patently erroneous & grossly illegal.

Further, in this case, High Court directs appropriate proceeding against the Revenue official for passing Section 148A(d) order despite the opinion that the proceedings needed to be dropped based on reply furnished by the Assessee.

The HIgh Court refers to coordinate bench ruling in Harish Chandra Bhati where Revenue Secretary filed an affidavit by referring to CBDT Instruction dt. Apr 23, 2022 and submitted that the CBDT Instruction is clear on initiation of suitable administrative action against the erring officer in case where assessments are found by the local committee to be high-pitched or where there is non-observance of principles of natural justice, non-application of mind or gross negligence of the Revenue.

High Court observes that passing of Section 148A(d) order holding Assessee’s case to be fit for reassessment attracts the CBDT’s Instruction and requires action since the order is patently erroneous, grossly illegal, and reflective of abuse of power by the Revenue official; Directs that action shall be taken within 4 weeks and a compliance report shall be submitted before the Court within 6 weeks.

The copy of the order is as under: