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2022 (6) TMI 694 - CALCUTTA HIGH COURTReopening of assessment u/s 147 - gross violation of principles of natural justice - Assessee argued for non-supply of documents and details not being afforded with an opportunity of cross-examination of the concerned person etc - HELD THAT:- AO has concluded the assessment proceedings solely based upon the information which was available before the commission stated to have been furnished by Wadhwa Group. Admittedly, the assessee was not a party to the proceedings before the Settlement Commission. That apart, while issuing the notice under Section 148, in the annexures contained therein, this information was not disclosed. AO sought to reopen the assessment proceedings based upon the information obtained from JCIT(OSD), Central Circle – 5(4), Mumbai which admittedly is a third party information. It is no doubt true that the assessing officer would state that he has analysed the information and made certain inquiries thereon. However, the fact remains that the request made by the assessee for supply of details and documents was not complied with. The reasons given by the assessing officer that the entire information pertaining to the search and seizure of the portion of Wadhwa Group cannot be furnished to the assessee. AO may be justified in coming to such conclusion. Nevertheless, if a portion of the information obtained from Wadhwa Group or certain findings rendered by the Settlement Commission concerning the assessee, that portion of the information ought to have been furnished. Nonfurnishing of such information which is relevant information would render the proceedings in violation of principles of natural justice. We agree with the findings of the learned Single Judge that the court cannot decide the correctness of the decision of the assessing officer but would be well-justified in examining as to whether there is any error in the decision making process. We have no hesitation to hold that there has been gross violation of principles of natural justice in the decision making process rendering the entire proceedings to be not sustainable. Therefore, we are inclined to interfere with the order passed by the assessing officer. For all the above reasons, the appeal is allowed and the order passed in the writ petition is set aside.We make it clear that the entire information concerning the Wadhwa Group are not required to be furnished to the assessee but that part of the information relevant to the assessee has to be furnished including the findings rendered by the Settlement Commission qua the assessee.
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