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'information' should qualify impugned show cause
the meaning ascribed to it notice required assessee to
in Explaination-1 below file its reply within six days
section 148 of the Act. That despite fact that section
such information should 1 4 8 A ( b ) m a n d a t o r i l y
exist before the assessing requires to give a minimum
officer initiates the enquiry time of seven days to
under section 148A(b) of the assessee to file its reply,
Act. revenue failed to fulfil
criterion of 'not less than seven
ii. That such information
should suggest that income chargeable to tax has days' as provided in clause (b) of section
148A .
escaped assessment and there should be a rational
and live nexus between the information and the 16. Further section 148A© casts a duty on Assessing
escapement of income. Officer to consider reply of assessee in response to
iii. That the assessing officer has to obtain the prior notice under section 148A(b) before making an
order under section 148A(d) and by not considering
approval of the specified authority as prescribed in
section 151 of the Act at each stage of the assessee's reply, mandate of section 148A(c) had
proceedings viz., before issuing the show-cause been violated , therefore, impugned order issued
under section 148A(d) and notice issued under
notice under section 148A(b) of the Act, before
passing the order under section 148A(d) of the Act section 148 were to be set aside
and before issuing the notice under section 148 of 17. Instruction no 299/10/2022-Dir(Inv.III)/647
the Act. dated 22/8/2022 wherein the in para 3 it is
mentioned as under :
That fulfilment of the aforesaid pre-conditions is
necessary for assuming valid jurisdiction to reassess “3. Further, it is re-emphasized that-
an assessee's income under section 147 to 151 of i. Before initiating proceedings under Section
148/147 of the Act, any information available on
the Act.
data-base/portal of the Income Tax Department
Section 148A(d) of the Act provides that Respondent shall be verified before drawing any adverse
No. 1 is required to decide the issue and pass the
inference against the taxpayers. It is not out of place
order on the basis of the material available on
to mention here that the information made
record, including the reply filed by the assessee. available/data uploaded by the reporting entities
Thus a speaking order dealing with all the
may not be fully accurate due to inter alia, error of
contentions should be passed. If none of the
human nature technical nature, etc. Therefore, due
aforesaid jurisdictional pre-conditions have been verification may be carried out and opportunity of
satisfied the reassessment proceedings would be
being heard be given to the taxpayer before
invalid and bad in law.
initiating proceedings under Section 148/147 of the
14. In the case of Aditya Hareshbhai Sonpal Vs. Act.
Income-tax officer [2023] 148 taxmann.com 13 ii. The supervisory authorities are hereby advised to
(Gujarat) the Hon court observed that while acting
keep an effectives upervision so as to insure that all
as quasi-judicial authority, it is expected from
extant Instructions/Guidelines/Circulars/SOPs are
revenue to follow principles, which are very well duly followed by the Assessing Officers in their
established and one of them is giving opportunity to
charge.
parties and to follow procedure in accordance with
law Instruction no F.No.299/10/2022-Dir (lnv. III) dated
22nd August, 2022.”
15. Similarly in case of Nidhi Bindal Vs. Income-tax
Officer[2022] 144 taxmann.com 122 (Delhi) the

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