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transaction with certain companies issued notice that income had escaped assessment. It was noted
under section 148(b) on 25-3-2022. Assessee filed description of property was different in notice
its reply within time on 31-3-22 which was duly issued under section 148A(b)and in order passed
acknowledged by revenue but revenue passed under section 148A(d) furthermore sale
order under section 148A(d) about over an hour consideration and circle rate in both documents
earlier on same day. were different. The intent behind issuing notice
In writ petition assessee prayed for quashing of said under section 148A(b) is to inform assessee of
notices and it had taken a categorical stand that it allegation against him/her with sufficient
had no transaction with companies named in particulars so that he/she can put forward his/her
section148A(b) notice and had also requested to defence. Since Assessing Officer incorporated
provide information and materials relied upon by incorrect information and failed to admit that he
revenue. Since impugned order had been made had committed a mistake while issuing notice under
before time for assessee to reply to section 148A(b) section 148A(b) even at time of passing order under
notice elapsed, matter set aside solely to facilitate section 148A(d), show cause notice issued under
de novo after taking into account reply of assessee . section 148A(b) as well as order passed under
section 148A(d) and notice issued under section
22. Similarly in case of Anurag Gupta vs Income Tax 148 were to be set aside.
Officer(Bom HC) The Hon Court observed that the
reassessment proceedings initiated are B. Similarly Catchy Prop-Build (P.) Ltd. Vs. Assistant
unsustainable on the ground of violation of the Commissioner of Income-tax [2022] 448 ITR 671
procedure prescribed under Section 148A(b) of the (Delhi) The Assessing Officer issued on assessee a
Act on account of the failure of the assessing officer notice under section 148A(b) seeking to initiate
to provide the requisite material which ought to reassessment proceedings on account of some
have been supplied along with the information in transactions of purchase and sale of shares
terms of the said section. undertaken by it . He further passed an order under
section 148A(d) holding that company 'M' was not
It was contended by the petitioner that the sound so as to make an investment of Rs. 3 crores to
procedure as prescribed under Section 148A(b) of
purchase shares of company 'B' and so source of
the Act as also the principles of natural justice had
investment remained unexplained . He also issued
been violated since the Petitioner was given the notice under section 148 to assessee.
information in terms of Section 148A(b) of the Act,
the material which ought to have been provided to It was noted that in notice issued under section
the Petitioner was not so furnished, in the absence 148A(b) assessee was never asked to explain source
whereof the Petitioner was precluded from fling an of funds that were used by 'M' to purchase shares of
effective reply to the show cause notice. 'B' . It was further noted that if foundational
allegation was missing in notice issued under
23. Incorrect information-: Providing opportunity to
section 148A(b) same could not be incorporated by
meet the allegation in the notice u/s. 148A(b):
issuing a supplementary notice . Notice issued
A. In the case of Usha Rani Girdhar Vs. Income-tax under section 148A(b) as well as order passed under
Officer [2023] 146 taxmann.com 547 (Delhi) the section 148A(d) and notice issued under section
Assessing Officer on perusal of information received 148 required to be quashed.
from Investigation Wing noted that assessee sold C. In the case of U.S. Associates v. Principal
property in relevant assessment year, however, Commissioner of Income-tax - [2023] 149 taxmann.
assessee did not declare any capital gain on said sale com 230 (Chhattisgarh) the court observed that
in return filed by assessee. Where notice initially issued under section 148A(b)

He, thus, issued notice under section 148A(b) and department had not disclosed fact of assessee having
later passed order under section 148A(d) holding suppressed transaction and this had also escaped

Life would be tragic if it weren’t funny. 36