2022 (11) TMI 1357 - HC - Income Tax

Reopening notice u/s 148A(b) - validity of order passed u/s 148A(d) and u/s 148 - petitioner states that there is no information on record which suggests that the income chargeable to tax has escaped assessment - allegation that income has escaped assessment is factually incorrect as petitioner has had no transaction with the said party and it is impossible for the petitioner to prove the negative. He also emphasises that the petitioner had not been furnished any documents/material along with the notice issued u/s 148A(b) HELD THAT - As on instructions, admits that the relevant documents/material has not been furnished to the petitioner along with the notice issued under Section 148A(b) - On instructions, states that the respondents have no objection if the present matter is remanded back for a fresh decision by the AO. Keeping in view the aforesaid, the impugned order passed u/s 148A(d) of the Act and the notice issued under Section 148 of the Act both dated 26th July, 2022 are set aside and the AO is directed to furnish the documents/material to the petitioner in support of the notice issued u/s 148A(b) within two weeks. Petitioner shall be at liberty to file a response thereto within four weeks thereafter. AO is also directed to pass a fresh order u/s 148A(d) of the Act within six weeks thereafter.

Summary

Issues:
Challenging notice under Section 148A(b) of the Income Tax Act, 1961 and related orders for Assessment Year 2015-16.

Analysis:
The petitioner filed a writ petition challenging a notice issued under Section 148A(b) of the Income Tax Act, 1961, dated May 28, 2022, along with subsequent orders. The petitioner's counsel argued that there was no evidence to suggest that income had escaped assessment for the relevant year. It was contended that the allegation of the revenue that income of Rs.6,49,30,000 had escaped assessment was factually incorrect, as there were no transactions with the party mentioned. Additionally, the petitioner had not received any supporting documents with the notice issued under Section 148A(b) of the Act.

Upon hearing the arguments, notice was issued, and the senior standing counsel for the respondents admitted that the relevant documents had not been provided to the petitioner along with the notice. The respondents expressed no objection to remanding the matter for a fresh decision by the Assessing Officer. Consequently, the court set aside the impugned order and directed the Assessing Officer to furnish the necessary documents to the petitioner within two weeks, allowing the petitioner to respond within four weeks thereafter. The Assessing Officer was also instructed to pass a fresh order under Section 148A(d) of the Act within six weeks.

In conclusion, the writ petition was disposed of with the mentioned directions, leaving the rights and contentions of all parties open for further proceedings.