TMI Blog2023 (2) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... rom hard copies obtained from DDIT. Further, it says there is potential cash borrowed from various lenders and the probable names of the group have been mentioned and set out without any particulars. Assuming that material was available as annexures to the said report of the DDIT, such documents should have been made known to the assessee so as to enable them to give an effective reply. The only conclusion that can be arrived at is to hold that the reopening of the assessment was bad as it was based on certain alleged potential cash borrowings and certain alleged possible financial transactions. That apart, the assessing officer did not independently apply its mind to the information furnished by the DDIT which he is required to do while exercising the power to reopen an assessment. We are of the considered view that the entire reopening proceedings commencing from issuance of the notice under Section 148A(b) and culminating in the order under Section 148A(d) is a clear abuse of the process of law. - Decided in favour of assessee. - M.A.T No.1757 of 2022 with I.A. No.CAN 1 of 2022 - - - Dated:- 24-11-2022 - Hon ble Mr. Justice T. S. Sivagnanam And Hon ble Mr. Justice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stice that the assessee should be afforded reasonable and adequate opportunity. The show cause notice issued under Section 148A (b) of the Act was received online by the assessee on 17th March, 2022. The impugned order has been passed on 29th March, 2022 and according to the Assessing Officer, the assessee has not produced any document to substantiate his claim. To be noted that 17th March, 2022 was declared as a State holiday on account of Holi festival and 18th March, 2022 (Friday) was also declared as holiday and 19th March, 2022 and 20th March, 2022 being Saturday and Sunday, the next working day is 21st March, 2022. Therefore, the period of notice issued to the assessee cannot be stated to be affording a reasonable and adequate opportunity to the appellant / assessee. 4. The learned standing counsel would submit that the assessee has submitted his reply which has also been referred to by the Assessing Officer in his order under Section 148A(b) of the Act. As rightly pointed by the learned senior Advocate for the appellant that nowhere in the reply given by the assessee, there is any elaborate discussion about Section 148, 148A of the Act and probably there occurred a fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with law and thereafter proceed further in terms of the directions. 8. With the aforesaid direction, the appeal and the connected application are disposed of. 9. No costs. 10. Urgent photostat certified copy of this order, if applied for, be furnished to the parties expeditiously upon compliance of all legal formalities. 4. The direction issued above to the assessing officer has clearly set out as to what he is required to do. Pursuant to the liberty granted, the appellant had submitted a detailed reply to the show cause notice dated 17th March, 2022 issued under Section 148A(b) of the Act by reply dated 4th July, 2022. 5. Among other things, the appellant had specifically pointed out that the PAN number mentioned in the notice does not belong to him and it appears that the notice was issued to the appellant on a wrong identity. Furthermore, the allegations that loan transactions were done, were totally denied and the appellant had also relied upon various decisions rendered by the High Courts to justify their stand that reopening could not have been resorted to. The said reply was received by the assesssing officer on 6th July, 2022. 6. Thus, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Laminator 8. From the above information, it is not clear as to how reopening of the assessment could have been resorted to. The report is as vague as possible as it states that possible financial transactions could be deduced and decoded from hard copies obtained from DDIT. Further, it says there is potential cash borrowed from various lenders and the probable names of the group have been mentioned and set out without any particulars. Assuming that material was available as annexures to the said report of the DDIT, such documents should have been made known to the assessee so as to enable them to give an effective reply. 9. As could be seen from the communication dated 21st January, 2022 referred above, in more than one place the authority has used the word potential and also the word probable . The Hon ble Supreme Court in Lucknow Development Authority Versus M.K. Gupta A.I.R. 1994 SC 787 considered the meaning of the word potential . It was pointed out that the word potential has been defined in the Oxford Dictionary as capable of coming into being, possibility. In Black s Law Dictionary, it is defined as extending any possibility but not in Act . It was f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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