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2022 (9) TMI 310 - HC - Income TaxReopening of assessment u/s 147 - issuance of notice u/s 148A(b) - Non verification was not done on the information which was available with the AO at the time of issuance of notice u/s 148A(b) - HELD THAT:- As come to the notice of CBDT that in several cases information made available/data uploaded by the reporting entries are not fully accurate due to error of human nature, technical nature etc.The department was advised to effect due verification and opportunity of being heard given to the 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 support of their claim. AO has given up the said allegation which formed the basis of the notice and proceeded on a fresh ground for alleging that the transaction with some other company was an accommodation entry. Therefore, on that score also the order is liable to be set aside in its entirety without giving any opportunity to reopen the matter on a different issue. Assessee appeal allowed.
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