TMI Blog2023 (10) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... mission of India. The disclosure of assets and liabilities were compared with the information available from the records of the department and sources of income with respect to five aspects, with separate amounts specified, were sought from the petitioner. The petitioner had supplied documents as per Annexures 3 to 6 and also as seen from Annexures 8 and 9. A further notice (Annexure-10) was issued under Section 148A(b) of the IT Act in which the specific proposal for escaped income was with respect to the purchase of agriculture land and purchase of vehicle, as available under the column for description and the amounts were specified as Rs. 55,00,000/- and Rs. 33,41,277/-. We should understand from the manner in which the tabulation is prepared that Rs. 55,00,000/- referred to, is of the agriculture land and Rs. 33,41,277/- referred to, is of the purchase of vehicle. We have to immediately notice that the amounts shown does not tally with what has been separately detailed under Annexure-2 notice. It also does not refer to the specific documents based on which the allegation of escaped income is raised. Despite this, the Income Tax Authority proceeded and passed an order unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of a vehicle coming to Rs. 6,69,277/-. We cannot but notice that the corrigendum is dated 30.05.2023 while the order passed under Section 148A(d) is dated 24.03.2023 on which date itself the notice under Section 148 was issued; the latter two documents having been produced as Annexure-13 and Annexure-14. Hence, obviously, there is infirmity and illegality in the order passed under Section 148A(d) which vitiates the further notice issued under Section 148. The corrigendum issued more than two months after the order under Section 148A(d) vitiates the order beyond repair. We also notice that sufficient material regarding the assets on which investments are alleged to have been made have also not been disclosed in the notice under Section 148A(b). If an agriculture land is referred to, it is only proper that the description along with the details of the location as also the specification of the deed by which the acquisition was made should be informed to the assessee. Similarly in the case of a vehicle, the Registration Number and the details are to be supplied. Only such information supplied would enable the assessee to make an effective reply; even if the said investments are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke of the description of unexplained investment of purchase of agriculture land and purchase of vehicle coming to Rs. 55,00,000/- (fifty five lacs) and Rs. 33,41,277/- (thirty three lacs forty one thousand two hundred seventy seven). The petitioner submits that there was no sufficient material regarding the information received, but still, he submitted a reply as per Annexure-12 again furnishing the details earlier supplied and also the documents to show the manner in which the money was sourced. Without considering the reply of the petitioner, mechanically Annexure-13 was passed, which is an order under Section 149A(d) of the IT Act. Now, Annexure-14 notice has been issued under Section 148 of the IT Act. Annexures 13 and 14 are challenged in the writ petition. 3. Learned counsel for the assessee Shri Niraj Kumar pointed out that there were no details regarding the information obtained by the Assessing Officer supplied to the petitioner to make an effective reply. The mere amounts stated, with reference to unspecified lands and vehicles cannot lead to a satisfaction as is required under Section 148A that this is a fit case for the purpose of proceeding under Section 148. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had capital gains of a specified amount during the previous year which was proposed as an escaped assessment within the meaning of Section 147 of the IT Act. The Division Bench found that the official respondent did not properly disclose the information that would be required to be supplied since the source of information was said to be merely other Income Tax Authority and but for the amount of capital gains specified as proposed escaped income, there were no details supplied. It was in the above circumstance that the notice under Section 148A(b), the order under Section 148A(d) and the resultant notice under Section 147 of the IT Act were set aside leaving liberty for issuance of a fresh notice and directing the Income Tax Authority to furnish clear information to the assessee as stipulated under Section 148A(b) of the IT Act. 6. Anju Singh (supra) was a case in which one of the allegations was with respect to non supply of the details of the information. Therein, the information available was on an inquiry conducted from the details available on the Insight Portal; on analysis of which it was found that the assessee had received dividend from J.M. Equity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply of the assessee furnished in response to the show cause notice issued under Clause (b) of Section 148A. An assessing authority is ordained to decide on the basis of material available on record including reply of the assessee whether or not it is a fit case to issue a notice under Section 148 by passing an order. An Assessing Officer, in our opinion, exercising power under Clause (d) of Section 148A does not conclusively hold that any income chargeable to tax has in fact escaped assessment for any assessment year. He simply decides, based on the material available before him, by passing an order as to whether or not it is a fit case to issue a notice under Section 148 of the Act . 16. Here is not a case where the Assessing Officer did not have any information based on which a notice was issued to the petitioner under Clause (b). It is not in dispute that the copy of the report of the Investigation Wing available to the Assessing Officer in the form of not on J.M. Balanced Fund- Annual Dividend Option beneficiaries was provided to the petitioner well in advance on 08.08.2022. It is not the petitioner s case that the said information/report was wholly irrelevant for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , were sought from the petitioner. The petitioner had supplied documents as per Annexures 3 to 6 and also as seen from Annexures 8 and 9. 10. A further notice (Annexure-10) was issued under Section 148A(b) of the IT Act in which the specific proposal for escaped income was with respect to the purchase of agriculture land and purchase of vehicle, as available under the column for description and the amounts were specified as Rs. 55,00,000/- and Rs. 33,41,277/-. We should understand from the manner in which the tabulation is prepared that Rs. 55,00,000/- referred to, is of the agriculture land and Rs. 33,41,277/- referred to, is of the purchase of vehicle. We have to immediately notice that the amounts shown does not tally with what has been separately detailed under Annexure-2 notice. It also does not refer to the specific documents based on which the allegation of escaped income is raised. Despite this, the Income Tax Authority proceeded and passed an order under Section 148 A(d) as per Annexure-13. In Annexure-13 it has been stated that the showcause notice was not replied to. There is no reference to Annexure 8, which is said to have been filed by the assessee. Based on Annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which date itself the notice under Section 148 was issued; the latter two documents having been produced as Annexure-13 and Annexure-14. Hence, obviously, there is infirmity and illegality in the order passed under Section 148A(d) which vitiates the further notice issued under Section 148. 14. The corrigendum issued more than two months after the order under Section 148A(d) vitiates the order beyond repair. We also notice that sufficient material regarding the assets on which investments are alleged to have been made have also not been disclosed in the notice under Section 148A(b). If an agriculture land is referred to, it is only proper that the description along with the details of the location as also the specification of the deed by which the acquisition was made should be informed to the assessee. Similarly in the case of a vehicle, the Registration Number and the details are to be supplied. Only such information supplied would enable the assessee to make an effective reply; even if the said investments are picked out from the assets and liabilities declared by the assessee based on which the proceedings were initiated. We hence set aside Annexures 10, 13 and 14. We make i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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