TaxTMI 
TaxTMI 
2023 (1) TMI 95
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.... 148A(b) of the Income Tax Act, 1961 (for short "IT Act") stating that the information which suggests that income chargeable to tax for the Assessment Year 2018-19 has escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961 and called upon the petitioner to explain as to why notice under Section 148A should not be issued. The petitioner was called to submit response with supporting documents electronically in e-proceeding through the e-filing by 27.03.2022. In the Annexure enclosed to the above show cause notice it is mentioned that a survey was conducted in the case of petitioner on 18.03.2019 and upon verification of the impounded materials, it was noticed that the sundry debtors of Rs.11.77 Crores were shown in the Assessment Year 2018-19 of petitioner and similarly, the sundry debtors of Rs.5.13 Crores for the Assessment Year 2018-19 were shown in the case of Kamakshi International. The common list of debtors in both the cases comes to Rs.16.90 Crores, but as per the loose papers found and impounded, the actual total debtors are Rs.28.32 Crores and thus there are unaccounted debtors of Rs.11.42 Crores. The annexure also mentioned that these sundry debto....
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....itrary and there was no violation of principles of natural justice. (c) It is further contended that though the material / loose sheets could not be provided inadvertently along with the show cause notice dt: 21.03.2022 issued under Section 148A(b) of the Income Tax Act, the same has been provided to the petitioner. The Authorized Representative (for short "AR") of the petitioner has made a request on behalf of the petitioner for copies of impounded material, etc. The said letter was received in the O/o Assistant Commissioner of Income Tax, Central Circle, Tirupathi on 29.07.2021. On 30.07.2021 the scanned copies of the impounded material were sent through whatsapp to the mobile numbers 7845044623 and 7448444623, which are the mobile telephone numbers of the AR of the petitioner namely Sri P. Purnachandra Rao. (d) It is further contended that the assessment proceedings in this case are at present in the initial stage. The assessment will be made on the basis of the impounded material, books of accounts and other record. During the course of assessment proceedings, the petitioner would be given sufficient opportunity to submit his case. Further, as per the request of the AR of t....
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....oose sheets. The loose sheets are critical material which you have relied upon and therefore the same requires to be shared with the assessee at least at this point of time as it constitutes the basis of claim that the AO is in possession of books of accounts or document or other evidence. The position of law as expounded by the judicial authorities (Surani Steels Cubes Ltd., Vs. Income Tax Officer Ward 1) 136 Taxmann.com 139 (2021) would be the guiding literature on this point. xxxx 13. We once again request you to share the information in your possession so as enable me to furnish a suitable reply" 8. Thus the petitioner requested for the necessary material to submit full-fledged reply. However, in the impugned order dated 31.03.2022 passed U/s 148A(d) of the IT Act, though the 2nd respondent mentioned that he is in possession of the information relating to the income chargeable to tax had escaped assessment and also mentioned about the request of the petitioner for furnishing the loose papers impounded which form the basis for issuing notice U/s 148A(b) of the IT Act, no observation has been made regarding the supply of documents as sought for by the petitioner. On the othe....
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....e ground on which the assessing authority is proposing to proceed for re-assessment. If the assessee is deprived of the relevant material he will not be in a position to submit a comprehensive and befitting reply to the show cause notice. Therefore, non-supply of relevant material, as stated supra, would amount to denial of principles of natural justice. 11. In Union of India v. Ashish Agarwal AIR 2022 SC 2781 Hon'ble Apex Court was dealing with the validity of the judgment of the High Court of Allahabad whereunder, it quashed several re-assessment notices issued by the revenue U/s 148 of the IT Act, 1961 (old Act) on the ground that the same are bad in law in view of the amendment to Finance Act, 2021, which amended the IT Act by introducing new provisions i.e., Section 147 to 151 w.e.f 01.04.2021. The reassessment notices were challenged on the grounds (1) No valid reasons to believe (2) No tangible /reliable material / information in possession of the Assessing Officer leading to formation of belief that the income had escaped assessment (3) No enquiry being conducted by the Assessing Officer prior to the issuance of notice and reopening is based on change of opinion of the Ass....
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.... in terms of Section 148A(b). The respective assessing officers shall within thirty days from today provide to the Assessees the information and material relied upon by the Revenue so that the Assessees can reply to the notices within two weeks thereafter; (Emphasis Supplied) (ii) The requirement of conducting any enquiry with the prior approval of the specified authority Under Section 148A(a) be dispensed with as a one-time measure vis-à-vis those notices which have been issued Under Section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts; (iii) The assessing officers shall thereafter pass an order in terms of Section 148A(d) after following the due procedure as required Under Section 148A(b) in respect of each of the concerned Assessees; (iv) All the defences which may be available to the Assessee Under Section 149 and/or which may be available under the Finance Act, 2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and; (v) The present order shall substitute/modify respective judgments and orders pa....