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2023 (8) TMI 683 - HC - Income TaxValidity of reopening of assessment - Reason to believe - whether show-cause notice contains sufficient information revealing the opinion formed by Assessing Officer that certain income of assessee has escaped assessment? - HELD THAT - As in the backdrop of textual interpretation of Section 148A(b) it is evident that if the show-cause notice contains sufficient information revealing the opinion formed by AO that certain income of assessee has escaped assessment with a precise but concise elaboration in the show-cause notice of the foundantional material behind the opinion then the show-cause notice can sustain judicial scrutiny even if the fundantional evidence/material (oral/documentary) is not supplied to the assessee. The reason for taking the aforesaid view is not far to see. The insertion of Section 148A w.e.f. 01.04.2021 in the Income Tax Act is to ensure that the power u/s 148 is not exercised as a matter of course or without application of mind. Thus the inquiry contemplated by Section 148A(b) is not a detailed or full-scale one but is merely meant to offer reasonable opportunity of being heard to the assessee to avoid casual re-opening assessment u/s 148. It may not be out of place to mention that the show-cause notice u/s 148A(b) ought to be pregnant with concise and precise information revealing the information about foundational material which persuaded the AO to come to a tentative finding that certain income has escaped assessment. In the conspectus of aforesaid discussions it is obvious that petitioner/assessee is not entitled to the material/evidence (oral/documentary) which are the foundation of the opinion formed by the Assessing Officer so long as a show-cause notice mentions about such foundational evidence/material and the supportive reasons to form the said opinion. It is obvious from the show-cause notice u/s 148A(b) that it is accompanied by annexure which informs the petitioner/assessee of the reasons and information which persuaded the Assessing Officer to form the tentative opinion that income pertaining to assessment year 2016-17 has escaped assessment. Moreso the petitioner/assessee has also filed a detailed reply (Annexure-P/4) to the said notice. From the above it is evident that the impugned order u/s 148A(b) and the consequential notice u/S 148 were issued/passed after following due process of law. Pertinently the question of going into the veracity and genuineness of material/evidence forming the opinion of the Assessing Officer suggesting that income of petitioner/assessee has escaped assessment ought not to be gone into while exercising writ jurisdiction under Article 226 or supervisory jurisdiction under Article 227 of the Constitution. Thus the ground of reliability and tenability of the evidence/material is not considered herein.
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