Ankit Agarwal Vs Principal Chief Commissioner of Income Tax Bihar and Jharkhand (Patna High Court)
Patna High Court held that reassessment proceedings initiated on the basis of incorrect information which was not supported by any material is not sustainable in law. Accordingly, order passed thereon is liable to be quashed.
Facts- The present petition is preferred by the petitioner mainly contesting that after completion of six years, the petitioner was served with impugned order purportedly passed under Section 148A(d) of the Act of 1961 on 06.04.2022 with respect to Assessment Year 2015-16.
Conclusion- In the case of Rajeev Bansal that in case of Union of India vs. Ashish Agarwal reported in (2023) 1 SCC 617, the Hon’ble Court had directed the Assessing Officer to provide relevant information and materials relied upon by the Revenue to the assessee within 30 days of the date of the judgment. It has been held that a show cause notice is effectively issued in terms of Section 148A(b) only if it is supplied along with the relevant information and materials by the Assessing Officer. Due to the legal fiction, the Assessing Officers were deemed to have been inhibited from acting in pursuance of the section 148 A(b) notice till the relevant materials were supplied to the assessee.
