AI Drafter 
TaxTMI 
TaxTMI 
2023 (2) TMI 1119
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.... petitioner challenges the order dated 29th September, 2022 passed in W.P.A. No.22194 of 2022. In the said writ petition, the appellant had challenged an order passed under Section 148A(d) of the Income Tax Act, 1961 (for short, "the Act") dated 25th August, 2022 on various grounds. The learned Single Bench dismissed the writ petition on the ground that it is open to the appellant to raise all contentions in the reopening proceedings, which are to follow under Section 148 of the Act. The correctness of the order passed in the writ petition has been challenged before us. 3. After elaborately hearing the learned Advocates for the parties and carefully considering the materials placed on record, we note that this is a second round of litiga....
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....according to the Assessing Officer, the assessee has not produced any document to substantiate his claim. To be noted that 17th March, 2022 was declared as a State holiday on account of Holi festival and 18th March, 2022 (Friday) was also declared as holiday and 19th March, 2022 and 20th March, 2022 being Saturday and Sunday, the next working day is 21st March, 2022. Therefore, the period of notice issued to the assessee cannot be stated to be affording a reasonable and adequate opportunity to the appellant / assessee. 4. The learned standing counsel would submit that the assessee has submitted his reply which has also been referred to by the Assessing Officer in his order under Section 148A(b) of the Act. As rightly pointed by the....
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....k to the Assessing Officer for fresh consideration. The notice issued under Section 148 of the Act dated 29th March, 2022 shall not be enforced and a fresh action can be initiated in accordance with law after complying with the following direction. 6. The appellant shall submit a fresh reply within two weeks from the date of receipt of the server copy of this judgment and order and upload the reply online and the appellant is at liberty to also refer to the order dated 29th March, 2022 under Section 148A (b) of the Act and also give his reply. On receipt of the said reply, the authorised representative of the appellant shall be given an opportunity of personal hearing through video conferencing and the documents that the assesee ma....
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....ived by the assesssing officer on 6th July, 2022. 6. Thus, in terms of the direction issued earlier by the Division Bench, it was the assessing officer, who was to conduct an enquiry and then proceed to pass an order. Unfortunately, the assessing officer, Mr. Mintu Roy, Circle - 43, Kolkata has abdicated his powers as an assessing officer. We say so because he has verbatim extracted several portions of the earlier order dated 29th March, 2022 in his order dated 25th August, 2022. The assessing officer could not have done so for more than one reasons. Firstly, the earlier order dated 29th March, 2022 could not have been referred to as the same has been set aside by the Division Bench. Understanding this basic legal concept is lacking in t....
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....sh borrowed from various lenders - Rs.7.45 crore. • Probable names grouped uner the group name • Dalmia • GG Dalmia • GG Dalmia A/c • G.G Dalmia • G.G. Dalmia • DALMIA TEA • GH agarwal (Anushree) • GH agarwal A/c G.G. Dalmia • Dalmia Laminator" 8. From the above information, it is not clear as to how reopening of the assessment could have been resorted to. The report is as vague as possible as it states that possible financial transactions could be deduced and decoded from hard copies obtained from DDIT. Further, it says there is potential cash borrowed from various lenders and the probable names of the group ....
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....re advantage and all it can tax is income, profits and gains made in the relevant accounting year. This decision if applied to the facts and circumstances of the case on hand, the only conclusion that can be arrived at is to hold that the reopening of the assessment was bad as it was based on certain alleged "potential" cash borrowings and certain alleged "possible" financial transactions. That apart, the assessing officer did not independently apply its mind to the information furnished by the DDIT which he is required to do while exercising the power to reopen an assessment. 10. Despite direction issued earlier, only copies of two statements have been given. The appellant has submitted his reply taking note of the veracity of the alleg....