9911796707
TMI Blog2023 (11) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... es have not been declared/offered for taxation. But the fact is Petitioner has filed his Return of Income and has also paid total tax and had also claimed refund - Therefore, the order under Section 148A(d) of the Act, passed on 26th April 2023, has to be quashed and set aside. We would go a step further and say that even the notice under Section 148A(b) of the Act was unjustified. This is because the Assessing 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. 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 tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The details of the aforesaid information is/are as given below (includes) : Reporting Period Information Description Source Amount (Rs.) A.Y. 2019-20 Salary Insight Portal-cru/ vru 58,18,452 A.Y. 2019-20 Purchase of Securities Insight Portal-cru/ vru 5,22,000 2. It is seen from the records that you are a non filer for the assessment year 2019-20 as you have failed to file a return of income. Therefore, the income arising from the above transactions during the year has not been declared / offered by you for taxation. 3. Therefore, the only information Respondent No. 1 had was that Petitioner despite having a salary of Rs. 58,18,452/- per annum and having purchased securities worth Rs. 5,22,000/-, was a non-filer for Assessment Year 2019-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order and notice. 6. On 21st August 2023, time to file reply was granted. Respondents were directed to file reply and serve a copy thereof within two weeks. No reply has been filed. Mr. Singh states that the Petition itself was served in June 2023. Therefore, considering facts of the case, we see no reason to give any further time to file any reply and we shall proceed to hear Petitioner. 7. In our view, the order dated 26th April 2023 passed under Section 148A(d) of the Act is unsustainable. This is because the notice under Section 148A(b) of the Act does not call upon Petitioner to provide any justification on any transaction in question. The entire basis for issuing the notice under Section 148A(b) of the Act was that Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunity of being heard to the assessee by issuing a show cause notice u/s 148A(b) of the Act. The said notice shall provide between 7 to 30 days time to the assessee for submitting the reply. A template of show cause notice is enclosed at Annexure-A1. The instruction regarding uploading of data on functionalities/portal of the Income Tax Department bearing F. No. 299/10/2022-Dir(Inv.III)/647 dated 22nd August 2022 at paragraphs 3 and 4 read as under : 3. Further, it in re-emphasized that - (i) Before initiating proceedings under Section 148/147 of the Act, any information available database/ portal of the Income Tax on Department shall be verified before drawing any adverse inference against the taxpayers. It is not out of place to mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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