Supply of reopening materials required; failure renders the notice invalid and assessment unsustainable, allowing recommencement only with materials.

Reopening under the new statutory regime requires supply of the materials forming the basis of reopening along with the Section 148A(b) notice so the assessee can make an effective response; where only reasons recorded were supplied and the underlying material was withheld, procedural requirements and principles of natural justice were breached, rendering the notice and resulting assessment legally unsustainable. The analysis permits the Revenue to recommence proceedings from issuance of the Section 148A(b) notice only after providing the relevant materials and subject to limitation constraints; consequently the impugned assessment order has been quashed on that ground.

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Issues: Whether the notice issued under Section 148A(b)/Section 148 of the Income-tax Act, 1961 (new regime) was validly issued in compliance with the statutory requirement to supply the materials forming the basis of reopening, and whether the resulting assessment is legally sustainable.

Analysis: Reopening under the new provisions introduced by the Finance Act, 2021 requires not only reasons recorded but also supply of the materials forming the basis of the reopening so that the assessee can file an effective reply. In the present case, only the reasons recorded were furnished with the notice issued under Section 148A(b), while the underlying material available with the assessing officer was not supplied. The absence of materials precluded effective representation by the assessee and thereby breached the procedural requirements of Section 148A and the principles of natural justice. Relevant authority establishes that assessment proceedings commenced without providing the requisite material are unsustainable. The Tribunal permitted the Revenue to recommence proceedings from the stage of notice under Section 148A(b) subject to supplying the relevant material and limitation constraints.

Conclusion: The notice under Section 148A(b)/Section 148 was invalid for non-compliance with the requirement to supply materials forming the basis of reopening; the assessment order is quashed and Ground No. 1 is allowed in favour of the assessee.

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