TMI Blog2023 (3) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... also appears to be a sale list, which was allegedly found during the search operations containing the names of 72 investors including the Petitioner which although referred to in the order u/s 148A(d) as also in the clarification communication dated 21st March 2022 was not provided to the Petitioner. Interestingly, while the communication dated 21st March, 2022, did say that the list of total sale was being attached for the ready reference of the Petitioner for purposes of submitting a reply to the show cause notice, no such list was admittedly furnished . It goes without saying that providing information to the Petitioner, without furnishing the material based upon which the information is provided, would render an assessee handicappe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondents : Mr. Ajeet Manwani a/w Ms. Samiksha Kanani. JUDGMENT : Per DHIRAJ SINGH THAKUR, J. The Petitioner challenges the notice under Section 148 of the Income Tax Act, 1961 ( the Act ) dated 26 March 2022 and notice dated 08th March 2022 under Section 148A(b) of the Act as also the Order passed in terms of Section 148A(d) of the Act. 2. Briefly stated the material facts are as under : The Petitioner filed his return as an individual for the assessment year 2018-19 under Section 139(1) of the Act. The return was processed under Section 143(1). 3. Subsequently, a notice under Section 148A(b) of the Act dated 8 March 2022 was issued by Respondent No.1 suggesting that income liable to tax for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on with your book of accounts or computation of total income. Also, this may be treated as show cause notice u/s 148A(b) of the Income Tax Act, 1961 and final opportunity to submit the details. In absence of any submission or details from your side with respect to the above, it shall be presumed that you nothing to say in the matter and the same will be dealt as per the provisions of the Income Tax Act, 1961. 4. This show cause notice was replied by a communication dated 14 March 2022, wherein the Petitioner totally denied that there was any transaction with BGR Construction LLP and that no warehouse had been booked or payment made to the said entity. The Petitioner also denied any on-money cash transaction with the said entity and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en had sufficient time to respond to the clarification letter dated 21 March 2022, did not file any response and that none of the principles of natural justice were violated in the case of the Petitioner. It was urged by Mr. Manwani, learned Counsel for the revenue that there was sufficient material with the assessing officer that the assessee had purchased a warehouse from BGR Construction LLP of Rs.70,00,000/-. That this fact was verified from the regular books of account of the said entity. That the name of the Petitioner had also figured in the said list of investors. It was, therefore, urged that the assessing officer was justified to reopen the assessment on the ground that income had escaped assessment based on the said material. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be show-cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter; 11. Mr. Walve, stated that in the present case the revenue had independently issued a notice to the Petitioner in terms of Section 148A(b) of the Act in accordance with the provisions of the Finance Act, 2021 and was not a case where notices issued under Section 148 under the old provisions were to be treated as notices issued under Section 148A(b) under the substituted provisions, which came into effect from 01st April 2021. It was urged that the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to the show cause notice, thereby rendering the purpose and spirit of Section 148A(b) of the Act totally illusive and ephemeral. The fact that the material also was required to be supplied can very well be gauged from the clear directions issued by the Supreme Court in the case of Union of India V/s. Ashish Agarwal. 12. Two other arguments were raised by Mr. Walve during the course of argument, pertaining to the failure on the part of the assessing officer to obtain the prior approval from the specified authority before issuing the clarification communication dated 21st March 2022, as also the fact that the assessing officer ought to have first conducted an inquiry in terms of Section 148A(a) of the Act. However, we do not deem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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