Court Upholds Tax Notices: No Violation of Natural Justice Found; Petitioner Given 30 Days to Respond.

The Court dismissed the Writ Petition challenging the notices and orders under Sections 148 A (b) and 148 for the assessment year 2019-20. The petitioner argued that the respondent violated principles of natural justice by issuing orders based on new information not included in the show cause notices. However, the Court found that the respondent's actions were justified, as they were based on new information obtained during an investigation, revealing irregularities. The Court allowed the petitioner to file returns within 30 days and respond to the notice within two weeks, with no costs awarded, and closed the connected Miscellaneous Petitions.

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Issues:
Challenge to notice/orders under Section 148 A (b) and 148 (b) for assessment year 2019-20, violation of principles of natural justice, assessment based on new information not in show cause notices.

Analysis:
The Writ Petition challenges the notice/orders issued by the respondent under Section 148 A (b) dated 30.03.2023, 148 (b) dated 31.03.2023, and the order under Section 148 (d) dated 13.04.2023 for the assessment year 2019-20. The petitioner contends that the respondent issued two show cause notices under Section 148 A (b) based on different sets of information, but the order under Section 148 (d) and subsequent notice under Section 148 were based on new information not part of the show cause notices. This is argued to violate principles of natural justice and Section 148 A (b) of the Act. The petitioner raised concerns about the lack of disclosure by the respondent regarding information from a surprise check related to a donation receipt provided by the petitioner to a political party. The respondent, however, justified the order based on new information obtained during a surprise check revealing irregularities in the documents submitted by the petitioner.

The Court noted that the petitioner was issued show cause notices under Section 148 A (b) based on specific information related to income from salary and interest. Subsequently, a second show cause notice was issued with additional information on deductions claimed under Chapter VI-A. The petitioner responded to these notices with supportive documents. The respondent then passed an order under Section 148 A (d) and issued a notice under Section 148 based on the information provided by the petitioner and additional information obtained during the investigation. The Court found that the respondent's actions were justified as they discovered irregularities in the documents submitted by the petitioner, leading to the issuance of the order and notice under Section 148.

The Court rejected the petitioner's argument that the respondent's actions violated principles of natural justice and Section 148 A (b) of the Act. It was determined that the respondent's decision was based on new information obtained during the investigation, which warranted the order under Section 148 A (d) and the consequential notice under Section 148. The Court dismissed the Writ Petition but allowed the petitioner to file returns within 30 days and reply to the notice within two weeks. No costs were awarded, and connected Miscellaneous Petitions were closed.

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