Tax Notice Overturned: Revenue Must Provide Details for Fair Response Under Income Tax Act, Fresh Order Required.

The HC set aside the impugned orders under Section 148A(b) of the Income Tax Act, 1961, due to insufficient detail in the notices, which denied the petitioner a fair opportunity to respond. The Revenue was directed to furnish all relevant material within three weeks, allowing the petitioner to respond effectively. The Assessing Officer must issue a fresh order within six weeks thereafter. The Court did not address the merits of the case, leaving all parties' rights and contentions open. The writ petition and pending application were disposed of accordingly.

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Issues:
Challenge to notice under Section 148A(b) of the Income Tax Act, 1961 for Assessment Year 2014-15.

Detailed Analysis:
The petitioner filed a writ petition challenging a notice issued under Section 148A(b) of the Income Tax Act, 1961, and subsequent orders. The petitioner argued that the respondent failed to comply with a Supreme Court direction, making allegations without supporting evidence. The notices alleged the petitioner received entries from bogus entities without specifying details, denying the petitioner a chance to respond effectively. The petitioner contended a violation of natural justice principles due to lack of opportunity to rebut information held by the Assessing Officer.

The Respondent-Revenue argued that the petitioner received accommodation entries from a specific bogus entity and provided bank details. The Court emphasized the necessity for specific material in notices under Section 148A(b) to enable meaningful responses. Referring to a previous case, the Court highlighted the importance of sharing information with the assessee for an effective opportunity to respond. Due to the lack of details in the notices, the Court found the petitioner was asked to respond to vague allegations, akin to searching for "a needle in a haystack."

The Court set aside the impugned orders and directed the Revenue to provide all relevant material within three weeks for the petitioner to respond. The Assessing Officer was instructed to pass a fresh order within six weeks thereafter. The Court clarified that it did not comment on the merits of the case, leaving the rights and contentions of all parties open. The writ petition and pending application were disposed of with these directions.

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