2014 (3) TMI 154 - DELHI HIGH COURT

Reassessment proceedings u/s 147 / 148 - validity of notice - non supply of documents to the assessee i.e. 2G Spectrum Report – Held that:- The order sheet entries demonstrate a clear and chronological compliance with the earlier order of the Court - In any case, the previous order of the Court expressly bars any objections by the petitioner to the fresh notice on the ground that the Revenue “had earlier issued notice under Sections 147/48 dated 5 July, 2011 - the petitioner’s present argument is that the proceedings are vitiated because the reasons in this case were recorded before the earlier notice was dropped – the argument is attempting to play the legality of the second notice against the existence of the first notice – was one that the previous order of this Court foresaw and specifically barred in terms of the order dated 28.5.2012, which is now final and binding upon both parties – thus, the notice is required to be set aside would set to nought the direction of the Court in the earlier writ petition – Decided against Assessee.

Adequacy of the material disclosed to justify reassessment proceedings - Whether the Revenue is within its right to keep the 2G Spectrum Report from the assessee on the ground of confidentiality or whether the failure to supply the report vitiates the proceedings and Whether the reasons to believe that income has escaped assessment in this case meet the test under Section 148 and judicial directives in that regard – Held that:- Far from holding that all documents used by the AO, let alone specific documents indicated by the assessee, are to be disclosed - Only when the privilege is claimed as regards the reasons recorded or when no material is provided in addition to the mere assertion of the subjective satisfaction of the AO, may the principle denying privilege or confidentiality operate - Even then, the claim for privilege may still prevail in that the Court may consider the manner in which the documents are to be inspected, but such questions does not arise in cases such as the present, where concrete and specific details – which support the belief under Section 147/148 – are communicated to the assessee independent of the document sought to be disclosed - Thus, the non-disclosure of the 2G Spectrum Report does not affect the notice – Decided against Assessee with costs.