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TMI Blog2023 (11) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... received a notice dated 31st March 2023 under Section 148A(b) of the Act alleging that there was information which suggests that income chargeable to tax for Assessment Year 2019-2020 has escaped assessment within the meaning of Section 147 of the Act. The details of information/enquiry was also enclosed. Petitioner was directed to submit reply to the notice along with supporting documents on or before 20th April 2023. 2. The information, based on which the notice was issued, reads as under : "Information, in accordance with the Risk Management Strategy formulated by the Central Board of Direct Taxes (CBDT) has been received in your case for the Financial Year 2018-19 relevant to A.Y. 2019-20 through Insight Portal. The details of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order under Section 148A(d) of the Act came to be passed rejecting the objections. According to Respondent No. 1, "assessee in his reply only stated that he had filed Income Tax Returns for the year under consideration. However, assessee did not provide his justification on the transactions in question. Thus it is logical to conclude that assessee has no explanation to offer with respect to the above mentioned information suggesting escapement of income in the case for Assessment Year 2019-2020." This was following by impugned notice dated 26th April 2023 issued under Section 148 of the Act. This Petition was therefore filed and interim relief was granted on 21st August 2023, restraining Respondents from taking any steps pursuant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer ("AO") before issuing the notice, was bound to atleast verify or enquire following the information that was received in accordance with the Risk Management Strategy. In fact the guidelines for issuance of notice under Section 148 of the Act bearing F. No. 299/10/2022-Dir(Inv.III)/611 dated 1st August 2022 at paragraph 2.1 (vi) and (vii) read as under : (vi) The AO shall, if required, undertake enquiries on any "information" received/available with him which suggests that the income chargeable to tax has escaped assessment in a previous year only with the prior approval of "specified authority". (vii) If the result of enquiry/information available suggests that the income chargeable to tax has escaped assessment, the AO shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be verified by the Officer uploading the said information/reports. Supervisory authorities are to ensure that all extant Instructions/ Guidelines/Circulars/SOPs in this regard are duly followed by Officer uploading the said information/reports. If the AO had only verified in the portal of assessee before initiating proceedings, particularly when he had the PAN number with him, AO would have realized that not only Petitioner has filed the Return of Income, but also the return has been processed and an order dated 26th February 2020 under Section 143(1) of the Act had been passed. Therefore, the notice that was issued under Section 148A(b) of the Act also has to be quashed and set aside. 9. In the circumstances, Petition disposed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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