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TMI Blog2022 (9) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax payers before initiating proceedings u/s 148/147 - In the preceding paragraph we have pointed out the factual position in the case on hand and it appears that proper verification was not done on the information which was available with the AO at the time of issuance of notice u/s 148A(b) of the Act which has led to an erroneous order being passed. The term information in Explanation-1 u/s 148 cannot be lightly resorted to so as to reopen assessment and this information cannot be a ground to give unbridled power to the revenue. In the case on hand, the information has been lightly used which resulted in issuance of notice. As pointed out earlier, the assessee had submitted the explanation to the notice along with documents in supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant and Mr. Tilak Mitra, learned standing counsel appearing for the respondent/revenue. So far as the first portion of the order passed by the learned Single Bench is concerned, the appellant/assessee has no quarrel as the order impugned in the writ petition has been quashed. The assessee is only aggrieved by the direction issued by the learned Single Bench remanding the matter back to the assessing officer. The issue is whether in the facts and circumstances of the case, such an order of remand was justified and called for. The appellant/assessee was issued notice under Section 148A(b) of the Act dated 22nd March, 2022. The sum and substance of the allegation in the notice was that the appellant/assessee has done fictitious deriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 148A(b) of the Act. Therefore, the order dated 7th April, 2022 is illegal and has to be held to be wholly unsustainable. In such factual position, the necessity to remand the matter back to the assessing officer does not arise. Further, we take note of the Circular issued by the Central Board of Direct Taxes (CBDT) dated 22nd August, 2022 giving instruction to the departmental officers with regard to the uploading of data on functionality/portal of the Income Tax Department. This circular emphasises the earlier circular dated 1st August, 2022 and in paragraph 3 therein, it has been stated as follows: 3). Further, it is re-emphasized that i) Before initiating proceedings under section 148/147 of the Act, any information ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Divya Capital One (P.) Ltd. vs. Assistant Commissioner of Income Tax reported in [2002] 139 taxmann.com 461 (Delhi), the Court had considered the new re-assessment claim and held as follows: 7. This Court is of the view that the new re-assessment scheme (vide amended sections 147 to 151 of the Act) was introduced by the Finance Act, 2021 with the intent of reducing litigation and to promote ease of doing business. In fact, the legislature brought in safeguards in the amended re-assessment scheme in accordance with the judgment of the Supreme Court in GKN Driveshafts (India) Ltd. v. ITO [2002] 125 Taxman 963/[2003] 259 ITR 19 before any exercise of jurisdiction to initiate reassessment proceedings under section 148 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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