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2022 (7) TMI 285 - HC - Income TaxReopening of assessment - validity of notice issued u/s 148-A - seven days clear notice issued or not? - petitioner submits that in the present case notice was issued on 22/03/2022 and in the notice, the petitioner was directed to respond by 28/03/2022, thus, according to the petitioner the same was not a seven days clear notice - HELD THAT:- The contention of learned counsel for the petitioner is that since show cause notice issued under Section 148A(b) fell shot by the mandated minimum period of seven days, the entire exercise thereafter has vitiated is considered to be rejected at the very outset. Reason being that though the requirement of affording seven days clear notice to the assessee is couched in mandatory language but in a given case where despite show cause notice having been issued affording less than seven days for assessee to respond, the assessee yet responds to the same within the deficient period, in an elaborate manner without objecting to the very maintainable of such show cause notice, the assessee would be deemed to have waived his right to assail a notice solely on the ground of deficient notice period. The scheme of Income Tax Act and the object behind its promulgation is to ensure maximum collection of tax by the State. Income Tax Act is more Revenue Centric than Assessee-Centric, thus, in case of any ambiguity or gray area while interpreting of any provision of Income Tax Act can be resolved by taking que from the object and intent behind enactment of Income Tax Act. As such in the present case, where a detailed reply on merit was submitted by the petitioner to the show cause notice which afforded six days instead of prescribed seven days to submit reply, the petitioner is estopped from raising any objection to the said show cause notice merely on the aforesaid ground. The authority upon taking into consideration the detailed reply of the petitioner, has taken a decision to issue notice under Section 148 of the Income Tax Act on the basis of material available on record including reply of the petitioner. Thus, this decision in our considered opinion cannot be gone into inasmuch as it is for the authority to act in accordance with Section 148-A of the Income Tax Act, at which stage. In our considered opinion, the authority is only required to form a prima facie opinion of any income having escaped assessment and thereafter proceed under Section 148 of the Income Tax Act. The concept of “free play in the joints” should be made available to the authority which is empowered to take a decision under Section 148-A of Income Tax Act. The decision under Section 148-A of the Income Tax perse does not fasten any kind of liability or penalty upon the assessee. On the contrary, the decision which is taken under Section 148-A of the Income Tax is followed by a notice under Section 148 of the Income Tax Act where another opportunity of being heard is afforded. Thus, in our considered view, we do not find any illegality in the order impugned dated 31/03/2022 (Annexure P/7) as well as the notice impugned 31/03/2022
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