Annexure Supplied With Notice Containing Details for Reassessment is Sufficient to Submit Response By Assessee | HC

Case Details: Samriddhi Industries v. Central Board of Direct Taxes - [2023] 155 taxmann.com 546 (Madhya Pradesh)

Judiciary and Counsel Details

• • Sheel Nagu & Hirdesh, JJ.
  • Mukesh Agrawal & Ayush Gupta, Advs. for the Petitioner.
  • Siddharth Sharma & Shubham Manchani, Advs. for the Respondent.

Facts of the Case

Assessing Officer (AO) issued a notice under section 148A(b), providing reasons to believe that certain income for the relevant assessment year should be taxed. This was due to the potential disallowance of purchase expenses claimed by the assessee, which needed to be added back to income.

The assessee sought time for the collection of documents and preparation and submission of reply, which was granted by issuance of a fresh notice under section 148A(b). The assessee didn’t respond on the merits but raised concerns about the information provided in the initial notice under section 148A(b). It requested specific details to formulate a response.

Based on the assessee’s response, AO issued an order under section 148A(d) explaining the reasons for deeming the case suitable for a notice under section 148. Subsequently, he sent a notice under section 148. Assessee filed writ before the Madras High Court.

High Court Held

The High Court held that the assessee raised concern that there was no live and proximate link between information received by the Assessing Officer and the formation of the belief that income chargeable to tax has escaped assessment.

However, it is seen from the notice issued under section 148A(b) that the same is accompanied by an annexure containing details of facts, figures and reasons, which are said to be the foundation of the AO forming the opinion that income chargeable to tax has escaped assessment.

On the aforesaid detail of information furnished to the assessee along with the notice under section 148A(b), it appears that the same was sufficient and adequate to afford reasonable opportunity to the assessee to prepare and submit an effective response.

Thus, it does not appear that the notice under section 148A(b) is inadequate in a particular material. Consequently, the writ petition deserves to be dismissed.

List of Cases Referred to

• • Amrit Homes (P.) Ltd. v. Dy. CIT [Writ Petition No. 15244 of 2023 (O), dated 9-8-2023] (para 6).