2023 (1) TMI 483 - HC - Income Tax

Reopening of assessment u/s 147 - Reassessment based on the report of the Investigation Wing - HELD THAT - The impugned order u/s 148A(d) was passed based on the report, without examining the underlying material which was available with the Investigation Wing. As a matter of fact, the petitioner claims that reassessment proceedings on the same facts were triggered for AY 2011-2012 and AY 2012-2013, which were dropped, once the petitioner pointed out this aspect to the concerned assessing officer. This facet of the matter is also noticed inimpugned order, passed under Section 148A(d) of the Act, although the petitioner was unable to obtain relief as was given to him in AY 2011-2012 and AY 2012-2013. Given these circumstances, we have no hesitation in setting aside the impugned order dated 26.07.2022 passed under Section 148A(d) and notice of even datei.e., 26.07.2022 passed under Section 148 of the Act. Liberty is, however, given to the respondents/revenue to take the next steps in the matter, albeit as per law.

Summary

Issues:
Challenge to order under Section 148A(d) of the Income Tax Act, 1961 for Assessment Year 2013-2014.

Analysis:
The High Court judgment pertains to a writ petition challenging an order passed under Section 148A(d) of the Income Tax Act, 1961, concerning Assessment Year 2013-2014. The petitioner sought interim relief against the order dated 26.07.2022 and notices issued under Sections 148, 148A(b), and 148A(d) of the Act. The court noted observations made by a previous bench regarding the Assessing Officer's conclusions based on information from the Investigation Wing. The court directed the Assessing Officer and an official from the Investigation Wing to be present in court. The impugned order revealed discrepancies in the petitioner's transactions with Sh. Prem Rattan, leading to the initiation of reassessment proceedings. The petitioner denied the transactions and highlighted similar reassessment proceedings for previous assessment years that were dropped upon clarification. The court found merit in the petitioner's contentions and set aside the impugned order and notices, granting liberty to the revenue to take further steps in accordance with the law. The court emphasized issuing a notice to the petitioner in case of fresh proceedings and providing a personal hearing to the petitioner's authorized representative. The writ petition was disposed of accordingly, and pending applications were closed.