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2022 (8) TMI 1140 - HC - Income TaxReopening of assessment u/s 147 - purpose of conducting an enquiry under Clause (a) of Section 148 (A) of the Act or is it the information based on which the notice under Clause (b) of Section 148 of the Act was issued - Violation of principles of natural justice - whether the allegation contained in the annexure and the questions posed therein is for the purpose of conducting an enquiry under Clause (a) of Section 148 (A) of the Act or is it the information based on which the notice under Clause (b) of Section 148 of the Act was issued? - HELD THAT:- We are fully satisfied that there has been gross violation of the principles of natural justice and the assessee did not have adequate opportunity to put forth their objection in an effective manner as the information sought for by the assessee was not furnished. Further we have held that the notices dated 21.03.2022 and 30.03.2022 though purported to have been issued under Clause (b) of Section 148A, on a reading of the annexure, it is clearly seen that the annexure does not contain information but it is a questionnaire. If that is so, then it goes without saying that what was intended by the assessing officer is to conduct an enquiry after receiving information from the assessee and the notice is deemed to be a notice under Section 148A (a) of the Act. Thus, there is gross procedural error from the very inception of the proceedings rendering the same as bad in law. In the result, the appeal is allowed, the order passed in the writ petition is set aside. Consequently, the writ petition is allowed to the extent indicated:- (i) The order under Clause (d) of Section 148A of the Act dated 12.04.2022 is set aside and the matter is remanded to the assessing officer. (ii) For the reasons mentioned above, the notices dated 21.03.2022 and 31.03.2022 though stated to have been issued under Clause (b) of Section 148A of the Act, they are in fact, notices under Clause (a) of Section 148A of the Act and be treated as such, and accordingly direction is issued to the assessing officer to conduct an enquiry after receipt of the explanation from the assessee. (iii) The assessing officer, before conducting enquiry as directed in Clause (ii) above, is directed to furnish full information as sought for by the assessee by their representation dated 30/31.03.2022 within 15 days from the date of the receipt of the server copy of this order. (iv) On receipt of the such information, the assessee is granted 10 days’ time to submit their written response/reply after which the assessing officer shall proceed to conduct an enquiry as provided for under Clause (a) under Section 148 A of the Act and thereafter proceed in accordance with law. (v) In the light of the above directions, the notice issued under Section 148 of the Act dated 12.04.2022 cannot be enforced.
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