Court sets aside Income Tax Act notices, emphasizes fair assessment process & specific material provision.

The court allowed the writ petition, setting aside the notices dated 15.07.2022 and 19.07.2022 under Section 148 and Section 148A(d) of the Income Tax Act, 1961. The matter was remitted back to the department with directions to provide the necessary information and documents to the petitioner for a fair assessment process. The court emphasized the importance of providing specific material to the assessee for a meaningful response during inquiry proceedings, in line with previous judgments from the Delhi High Court and the Supreme Court.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 and notice under Section 148A(d) dated 15.07.2022.

Analysis:
The petitioner challenged the notices issued under Section 148 and Section 148A(d) due to non-supply of necessary information and material documents. The petitioner argued that he had requested specific information and documents related to alleged transactions, bogus purchases, acceptance of bogus bills, documentary evidence, inquiry details, and more, which formed the basis of the notices. The petitioner contended that the denial of these documents violated the law, depriving him of the opportunity to defend himself effectively. Reference was made to a similar case in the Delhi High Court to support the petitioner's argument.

The respondents, however, claimed that the petitioner had received the notice under Section 148(b) and had replied without raising objections or requesting additional information. They argued that the notice contained all relevant information, and the petitioner was aware of the grounds for prosecution. Reference was made to a Delhi High Court decision emphasizing the importance of providing specific material and information to the assessee for a meaningful response during inquiry proceedings.

The court noted that the department had not provided the requested information and documents to the petitioner, despite references in the notices. It was emphasized that without access to these materials, the petitioner could not justify his actions or provide reasonable explanations. The court considered previous judgments from the Delhi High Court and the Supreme Court, which highlighted the need for providing relevant material to the assessee for a fair assessment process.

Based on the authoritative decisions cited, the court allowed the writ petition, setting aside the notices dated 15.07.2022 and 19.07.2022. The matter was remitted back to the department with directions to provide the necessary information and documents referred to in the notice under Section 148A(b) and to pass a fresh order after considering the petitioner's submissions. The court concluded by disposing of the writ petition in favor of the petitioner.

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