9911796707
TMI Blog2022 (6) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued under Section 148 of the Income Tax Act, 1961 (the 'Act' in brevity); (b) to rescind the said notice dated March 31, 2021 and/or purported order dated March 31, 2022 as being without jurisdiction including the demand for penalty; (c) to prohibit the respondents from giving effect to the said notice/order; and (d) for issuance of a Writ of Certiorari to quash the said notices as also the consequential penalty notices. The notice/order impugned in the writ petition was challenged mainly on the ground of violation of principles of natural justice, arbitrary, erroneous, illegal, invalid and perverse and, consequently, without jurisdiction. Various facts were set out in the writ petition to substantiate those grounds. The learned Single J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttacharyya, learned counsel appearing for the respondent. Firstly, we would note that the learned writ court while holding that there is no procedural illegality or infirmity in the reassessment proceedings, has not assigned any reasons to substantiate such conclusion. Therefore, we will be justified in holding that such conclusion arrived at by the learned writ court without assigning any reason is not tenable. The core issue in the instant appeal is whether there has been violation of principles of natural justice. The proceedings commenced by issuance of notice under Section 148 of the Act dated 31st March, 2021. In the annexure to the said notice the brief details of the assessee has been mentioned, brief details of the information col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4)/Info Sharing/Wadhwa Group/20-21 dt 19.03.2021. iii. The copy of the evidence of granting such alleged loan by the assessee with collaborative documents, if any, you have. iv. Copy of any other document(s) gathered by the JCIT (OSD) Mumbai or you to corroborate your allegation that assessee has cash transaction with the above company. v. Details of the alleged transaction of Rs.5 crores and 29.92 lacs with supportive documents." As would be seen from the above paragraphs, the assessee has requested for providing details and documents and the objections filed to the reopening proceedings by the assessee touching the merits of the matter as well as pointing out the legal principle were all without prejudice to the request made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing proceedings by order dated 7th March, 2022. In the said order the assessing officer takes a stand that there is no legal requirement to share the entire material collected during the course of search or post-search/assessment/post-assessment proceedings in the case of Wadhwa Group with the assessee at the stage of reopening of the proceedings and further details as required by the assessee may be shared before finalization of the assessment proceedings. Certain decisions were also referred to by the assessing officer. After receipt of the order disposing of the objection once again the assessee sent a communication dated 20th March, 2021 reiterating their earlier request to the reply dated 21st December, 2021 requesting for details and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not at the first instance before the commission disclose the names and details of the persons who had lent monies to them during the course of hearing, had mentioned the names of the persons who had lent monies and to whom they had paid interest and, according to the assessing officer, the name of the assessee also featured in the said submission made by Wadhwa Group before Settlement Commission and, this in the opinion of the assessing officer would be sufficient to hold that the transactions had taken place between the assessee and the Wadhwa Group. On reading of the assessment order, more particularly paragraphs 3 and 5 therein, we find that the assessing officer has concluded the assessment proceedings solely based upon the information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing officer but would be well-justified in examining as to whether there is any error in the decision making process. In the light of the facts which we have set out in the preceding paragraphs, we have no hesitation to hold that there has been gross violation of principles of natural justice in the decision making process rendering the entire proceedings to be not sustainable. Therefore, we are inclined to interfere with the order passed by the assessing officer. For all the above reasons, the appeal is allowed and the order passed in the writ petition is set aside. Consequently, the order disposing of the objection filed by the assessee dated 7th March, 2022 and the assessment order dated 31st March, 2022 are quashed and the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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