Court quashes deficient tax notice, orders fresh issuance with specifics. Amendment requested, matter adjourned.

The court quashed the notice dated 29th November 2018 issued under Section 153A of the Income Tax Act, ruling it was deficient as it did not specify the seized material forming the basis for the notice. The court emphasized the importance of a show cause notice and directed the respondent to issue a fresh notice with necessary particulars. The petitioner's request for an amendment was noted, and the matter was scheduled for further directions on 30th November 2021, keeping all rights and contentions open for future proceedings.

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Issues:
Impugning a notice under Section 153A of the Income Tax Act, 1961 issued without jurisdiction.

Analysis:
The petitioner challenged a notice dated 29th November 2018 under Section 153A of the Income Tax Act, alleging it was issued without jurisdiction as there was no incriminating material in possession of the assessing officer. The notice lacked particulars and simply required the preparation of a true and correct return of income for the Assessment year 2012-13 within 30 days. The respondent argued that Section 153A mandates the assessing officer to call for returns of income for the earlier six assessment years once a search is conducted. The court acknowledged this mandatory requirement but emphasized that assessments under Section 153A must be based on seized material. The notice in question failed to mention whether seized material was involved, rendering it insufficient.

The court highlighted the importance of a show cause notice as a preliminary step to enable effective response by the party. Since Section 153A necessitates assessments based on seized material, the notice should have specified the basis for invoking the section, such as seized material under Section 132 or requisitioned assets under Section 132A. The absence of such details rendered the notice deficient. The petitioner had already filed returns they believed to be accurate, and the notice did not provide any indication of the need for a fresh return based on seized material. The court emphasized the necessity for the notice to contain relevant information to enable compliance by the assessee.

Consequently, the court quashed and set aside the notice dated 29th November 2018, without making any observations on the case's merits. The respondent was directed to issue a fresh notice under Section 153A, ensuring it includes the necessary particulars to inform the petitioner of the basis for the notice. The court kept all rights and contentions of the parties open for further proceedings. The petitioner's request for an amendment to the petition was noted, and the court scheduled the matter for directions on 30th November 2021.

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