TMI Blog2022 (9) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... is subject matter of notices. In the facts of the present case as well, the petitioner in her reply dated 24th May, 2022, had while highlighting that the assertions of the AO in the notice dated 17th May, 2022 were vague had specifically sought better material and information from AO to enable a rebuttal. The issuance of notice dated 23rd June, 2022 furnishing specific details of the transaction, which as per AO is subject matter of the notice dated 17th May, 2022 cannot be faulted. A perusal of the notice dated 23rdJune, 2022 and impugned order dated 22nd July, 2022 shows that as per the AO the details of the transaction which form the basis of the notices dated 19th April, 2021 and 23rd June, 2021 are same. It is the case of the respondent that the said material was available on record and the said form the basis of the inquiry, when the initial notice dated 19th April, 2021 was issued. Pertinently, the petitioner has not offered any explanation for the transaction(s) entered with M/s Subhshree Financial Management Pvt. Ltd. Limited in the relevant financial year in her reply dated 27th June, 2022. In the absence of any explanation offered in her reply, we do not find an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the reassessment proceedings have been disposed-off and consequently notice dated 22.07.2022 u/s 148 of the Income Tax Act, 1961 was issued against the Petitioner for the A.Y. 2013-14; c) That this Hon'b1e High Court be pleased to pass a writ of and/or order and/or direction in the nature of prohibition commanding Respondents to forebear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the said purported notice under section 148 of the Income Tax Act 1961 and/or in any proceedings initiated thereunder for the A.Y 2013-14; d) That this Hon'ble High Court be pleased to hold that the CBDT Instruction No. 01/2022, dated 11.5.2022 authorizing the revenue to initiate the reassessment proceedings for the A.Y. 2013-14 is ultra-virus/bad in law, to the First Proviso to substituted/new section 149 of the Income Tax Act, 1961; 2. Learned Senior Counsel for the petitioner stated that the petitioner was served with a notice dated 19th April, 2021, under Section 148 of the Income Tax Act, 1961 ( the Act ) seeking to initiate reassessment proceedings with respect to Assessment Year ( AY ) 2013-14. He stated that the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th all the relevant documents. The reply clarified that the material set-out in the notice dated 17th May, 2022 did not pertain to the petitioner herein since during the relevant Financial Year ( FY ) the petitioner had not carried-out any financial transactions relating to deposit of cash in her current account. The petitioner further categorically denied that she had withdrawn any such cash by using the ATM. In this regard, it was stated that the petitioner does not possess any Debit Card and therefore, she is not in a position to use an ATM as alleged. The petitioner to substantiate the aforesaid stand duly annexed her Bank Statement and a Certificate from her banker to the effect that no Debit Card has been issued, with the reply. It is the contention of the petitioner that after submission of reply dated 24thMay, 2022, the AO had time until 30th June, 2022 to pass the orders under Section 148A(d) of the Act. 6. He contended that the AO however, instead of passing the order, issued a further notice dated 23rdJune, 2022 setting-out therein, entirely new facts for justifying the issuance of the previous notices. The explanation provided in this notice dated 23rdJune, 2022 read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r for receipt on an amount of Rs.50,00,000/- (Rupees Fifty Lacs) from an entity namely M/s Subhshree Financial Management Pvt. Ltd. during the relevant Financial Year. The petitioner replied to the aforesaid notice vide her reply dated 28th June, 2022 and responded to the said allegations specifically as under : 15. The assessee further submits that even today no material whatsoever had been furnished in support of your allegation as contained in your notice dated 23.06.2022 and purported to be Letter/Order u/s 148A in view of any direction of Hon'ble Courts - Letter . It is submitted the aforesaid facts clearly shows a complete non-application of mind and the proceedings have been initiated against the assessee for the purpose of making any roving and fishing enquiry without existence of any material. It is respectfully additionally submitted and without prejudice to the aforesaid submission, that even in your notice dated 23.06.2022, it had been stated that 'it is established beyond doubt that the assessee is one of the beneficiaries of the entries routed between the account of Shri Raj Kumar Singh and the above shell companies'. It is submitted in response ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of the notice dated 17th May, 2022. It therefore, necessarily gives rise to the conclusion that no information was available with the AO on 27th March, 2021 when the initial notice dated 19th April, 2021 was issued and on 17th May, 2022. He stated that it is impermissible for the AO to set-up a new case by issuing a notice dated 23rdJune, 2022 and the petitioner had been denied any meaningful opportunity to respond to the contents of the notice dated 23rd June, 2022. 13. Issue notice. 14. Mr. Ruchir Bhatia, learned Senior standing counsel accepted notice and submitted that notice dated 23rd June, 2022 was issued by the AO in continuation of the material and information provided to the petitioner on 17th May, 2022. He submitted that the petitioner herself had requested for better particulars in her reply dated 24thMay, 2022 and therefore, the AO provided these particulars as per the request of the petitioner. He submitted that as per the information available with the Income Tax Department, M/s Subhshree Financial Management Pvt. Ltd. is an accommodation entry provider. In this regard, he submitted that the Bank Statement furnished by the petitioner duly reflects the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writ concerned only with the validity of the AO s action in issuing the notice dated 23rd June 2022. We are unable to accept the contention of learned counsel for the petitioner that the AO was precluded from providing the information set out in the notice dated 23rd June, 2022. In the impugned order, the AO has noted that information contained in the notice dated 23rd June, 2022 was provided to the petitioner upon her request for further material as per her reply dated 23rd May, 2022. The impugned order specifically identifies that the transaction of the petitioner with M/s Subhshree Financial Management Pvt. Ltd. dated 10thAugust, 2012 is subject matter of notices. 20. This Court has consistently observed that to give effect to the objective of the scheme of Section 148A of the Act, the AO must provide specific material and information to the assessee at the stage of Section 148A(b) of the Act so that the assessee can provide a meaningful response at the stage of inquiry under Section 148A proceedings. The following observation of this Court in its decision of Divya Capital One Private Limited v. ACIT Ors. Cited at 2022 SCC OnLine Del 1461 , while dealing with proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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