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2023 (11) TMI 345 - BOMBAY HIGH COURTValidity of reassessment u/s 147 - allegation of not filing of return of income - HELD THAT:- The order passed u/s 148A(d) is unsustainable. This is because the notice u/s 148A(b) of the Act does not call upon Petitioner to provide any justification on any transaction in question. The entire basis for issuing the notice u/s 148A(b) was that Petitioner was a non-filer as he has failed to file the Return of Income and therefore, the income from salary and purchase of securities have not been declared/offered for taxation. But the fact is Petitioner has filed his Return of Income and has also paid total tax and had also claimed refund - Therefore, the order under Section 148A(d) of the Act, passed on 26th April 2023, has to be quashed and set aside. We would go a step further and say that even the notice under Section 148A(b) of the Act was unjustified. This is because the Assessing Officer (“AO”) before issuing the notice, was bound to atleast verify or enquire following the information that was received in accordance with the Risk Management Strategy. If the AO had only verified in the portal of assessee before initiating proceedings, particularly when he had the PAN number with him, AO would have realized that not only Petitioner has filed the Return of Income, but also the return has been processed and an order dated 26th February 2020 u/s 143(1) of the Act had been passed. Therefore, the notice that was issued under Section 148A(b) of the Act also has to be quashed and set aside. Decided in favour of assessee.
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