SWASTIK WIRE PRODUCTS V. PRINCIPAL COMMISSIONER OF INCOME TAX-1 AND ANR

CWP/6472/2022

AI Insights

The case involves Swastik Wire Products, a partnership firm engaged in business activities in Baddi, which was subjected to a reassessment notice under Section 148A of the Income Tax Act, 1961 for the assessment year 2018-19. The reassessment was based on allegations that the firm had sold mutual funds, held interests in assets, and made foreign remittances that were not declared in their income tax return. The firm contested these allegations, providing evidence that the transactions cited by the Assessing Officer did not pertain to them. The court found that the Assessing Officer had not adequately considered the firm's replies and had not passed a speaking order as required under Section 148A(d), thus violating the principles of natural justice.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 747319 (HC-HIMACHAL_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 26-12-2022
• Assessment Year: misc
• Other Referred Cases: Best Buildwell (P.) Ltd. vs. Income Tax Officer, Divya Capital One (P.) Ltd vs. Assistant Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VINAY KUTHIALA; VANDNA KUTHIALA
• Assessee Lawyers: VISHAL MOHAN; PRAVEEN SHARMA; ADITYA SOOD
• Keywords: Assessment year 2018-19; Escaped assessment; Income Tax; Reassessment; Show cause notice
• Section: 147; 148; 143(1); 148A(b); 148A(d); 148A

Judgement Text

"IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA. CWP No. 6472 of 2022 Reserved on : 21.12.2022 Decided on: 26th December, 2022 Swastik Wire Products .......Petitioner Versus Principal Commissioner of Income Tax and others ...Respondents Coram The Hon’ble Mr. Justice Tarlok Singh Chauhan, Judge. The Hon’ble Mr. Justice Virender Singh, Judge. Whether approved for reporting?1 Yes. For the petitioner: Mr. Vishal Mohan, Senior Advocate with Mr. Praveen Sharma and Mr. Aditya Sood, Advocates. For the respondents: Mr. Vinay Kuthiala, Senior Advocate with Ms. Vandna Kuthiala, Advocate. Tarlok Singh Chauhan, Judge. The petitioner is a partnership concern engaged in its business activities in Baddi. The petitioner is regularly assessed to income tax and had duly filed its return for the assessment year 2018-19 (impugned assessment year). The said return was processed under Section 143(1) of the Income Tax Act, 1961 by the Central Processing Centre of respondent No.1, 1 Whether the reporters of Local Papers may be allowed to see the judgment? Yes. 2 Bengaluru and order to this effect was also passed vide Annexure P-2. The respondents thereafter served upon the petitioner notice under Clause (b) of Section 148A of the Income Tax Act (for short ‘the Act’) on 19.03.022, asking the assessee/petitioner to show cause as to why case should not be reopened under Section 147 read with Section 148 of the Act. 2. A perusal of the show cause notice would go to reveal that the case was sought to be reopened on the following grounds:- “a). That as per the learned Assessing Officer the firm ha sold mutual funds amounting to (which E Rs.8,13,63,000/- had not been declared in the income tax return a 13 income for the impugned assessment year. b) That the learned Assessing officer was of the view the assessee firm had interest in assets amounting Rs.18,07,73,000/- which had also not been offered for taxation. c) Last but not the least, the learned Assessing Officer being the respondent No.2 was of the view that assessee's firm had made foreign remittance which had not been declared in the return of income. The value of the foreign remittance amounting to Rs.78,29,747/- and in totality according to the learned 3 Assessing Officer a sum of Rs.26,99,62,000/- had escaped assessment.” 3. The petitioner filed reply to the show cause notice dated 26.03.2022, wherein it had categorically been mentioned that neither the petitioner had sold any mutual funds, held interest in assets nor had made foreign remittance of Rs.78,29,747/- and as such it was vehemently denied that income to that extent had escaped assessment. The petitioner had not asked for supply of the documents whereby it had been inferred that the assessee had made aforementioned transactions. However, in the reply dated 26.03.2022, it was also stated by the petitioner that during the relevant assessment year, it had made the foreign remittance of Rs. 81,05,333/- (and not of Rs. 78,29,747/-) which was already declared in the return of income filed and also, documentary evidences in support of its claim were duly filed before the ld. Assessing officer. 4. The Assessing Office proceeded to reject the reply and passed an order under Section 148A(d) of the Act, constraining the petitioner to file the instant petition. 4 5. The respondents have contested the petition by filing reply, wherein preliminary objections regarding maintainability of the petition, more particularly, on the ground of availability of the alternative remedy has been taken. In addition thereto, the respondents have sought to justify their action by claiming that the income of Rs. 26,99,62,000/-and had escaped notice and, therefore, the impugned notice had rightly been issued. The respondents have further sought to justify their claim on the ground that the notice under Section 148A(b) was issued on the basis of the information received in the online portal of the Income Tax Department i.e. “Insight Portal under High Risk/CRIU/VRU”. According to the respondents, the petitioner had sold mutual funds amounting to Rs. 813.63 lakhs to different parties during the financial year 2017-18 relevant to assessment year 2018-19. The petitioner had interest in assets of firm or association of persons as a partner or member amounting to Rs.1807.73 lakhs and that an income of Rs. 29,99,62,000/- has escaped assessment. 6. We have heard learned counsel for the parties and have also gone through the material placed on record. 7. Section 148A of the Act reads as under:- 5 148A. The Assessing Officer shall, before issuing any notice under section 148,— (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (b) provide an opportunity of being heard to the assessee, 1[***] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Provided that the provisions of this section shall not apply in a case where,— (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any 6 other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, 2[relate to, the assessee; or (d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.] Explanation.—For the purposes of this section, specified authority means the specified authority referred to in section 151.] 8. At the outset, it needs to be noticed that Section 148A was incorporated so as to ensure that the there is proper application of mind by the authorities by passing a detailed, reasoned and a speaking order under Section 148A(d) of the Act, instead of passing a cryptic order in a mechanical manner. The Assessing Officer was expected to rebut each and every objection, reply and submissions with proper reasons. This is clearly evident from the new revised guidelines issued by the Central Board of Direct Taxes dated 01.08.2022, though the assessment in the case is prior to the issuance of such guidelines. Nonetheless, these guidelines would definitely 7 work as a guideline and also an indicator as to why the same have been issued. 9. As observed above, the aforesaid guidelines are issued after the assessment, the same would in stricto senso not be applicable to the facts of the instant case. 10. Adverting to the facts, it would be noticed that notice under Clause (b) of Section 148A of the Act was served upon the petitioner, which reads as under:- Whereas have information which suggests that income chargeable to tax for the Assessment Year 2018-19 has escaped assessment within the meaning of section 147 of the Income-tax Act, 1961. The details of the information and enquiry, if conducted, are enclosed with this notice in Annexure-A. 2. You are required to show cause as to why, in view of the details contained in Annexure A, a notice section 148 of the Income Tax Act, 1961 should not be issued. 3. You may, to the extent technologically feasible, submit your response with supporting documents (if any) on the above mentioned issues electronically in 'e-proceeding facility through your account in e-filing portal at your convenience on or before 26/03/2022. 4. This notice is being issued after obtaining the prior approval of the PCIT, Chandigarh-1 accorded on date 19/03/2022 vide Reference No. 100000028876635. Annexure 8 As per information received under RMS (Risk Management System for the F.Y. 2017-18 relevant to A.Y. 2018-19, under 'High Risk CRIU/VRU information, the assessee M/s Swastik Wire Products, PAN- ABGFS3429J is engaged in the business of manufacturing. The Assessee has shown total taxable income of Rs. 813.62 lacs during the year under consideration as compared to Rs. 786.57 lacs shown in the previous year The assessee has sold Mutual funds amounting to Rs. 813.63 lacs to different persons during the year under consideration, interest held in assets of a firm or association of persons as a partner or member by the assessee has been shown at Rs. 1807.73 lacs Further, the assessee has shown Foreign remittances of Rs. 78.29. The details as well as source of such transactions call verification/clarification. 2. In view of the above facts, under the provisions of clause (b) of section 148A of the Income Tax Act, 1961, you are hereby provided an opportunity of being heard and asked to show cause as to why an amount of Rs.26,99,62,000/- should not be treated as income which has escaped assessment and notice u/s 148 of the Income Tax Act, 1961 may not be issued in your case on the basis of above referred information available in record for the A.Y. 2018-19. This show cause is being issued after requisite approval from the specified authority as per the provisions of section 11 of the Income Tax Act, 1961. 11. The respondents filed reply and the same is reproduced as under:- 1. As mentioned in the notice that \"The assessee has sold Mutual funds amounting to Rs. 813.63 locs to different persons during the year under consideration\" 9 In respect to the same we want to submit that the assessee has not sold mutual funds amounting to Rs. 813.63 Lacs during the relevant assessment year 2018-19. However, your goodself stated in the notice that sale of mutual funds of Rs. 813.63 lacs were made during the year under consideration. So, keeping in view of providing an opportunity of being heard and principal of natural justice, it is requested to your goodtself to kindly provide details of transactions as claimed by your goodsell of Rs. 813.63 lacs in the name of the assessee firm like any document to provide dates of each transactions and name of mutual fund held in the name of the assessee firm. bank account in the name of assessee which shows the amount of transaction etc. so that assessee's response can be Bled with your goodself-with respect to information provides. 2. Further, it is mentioned in the notice that \"interest held in assets of a firm or association of persons as a partner or member by the assessee has been shown at Rs. 1897.73 lac In respect to the same we submit that the assessee firm does not have any interest in assets of a firm or association as a partner or member amouting to Rs. 1807.73 Lacs. However, your goodself stated in the notice that the assessee has interest held in assets of a firm or association of persons as a partner or member by the assessee has been shown at Rs. 1807/73 lacs. So. keeping in view of providing an opportunity of being heard and principal of natural justice, it is requested to your goodsell to kindly provide detalls of such interest held by the assessee firm as claimed by your goodself of Rs.1807.73 lacs Uke any document to provide the name of the firm or association in which the assessee is partner or member, date of acquisition of such interest, bank account which shows the transaction for purchase of such interest etc. so that assessee's response can be filed with your goodself with respect to Information provided. 3. Also it is mentioned in the notice that the assessee has made a foreign remittances of Rs. 78.28 in respect to the same, we want to submit that the assessee firm has not undertaken any foreign remittance of Rs. 78:29 as mentioned in the notice during the relevant assessment year 2018-19. However, it is submitted that assessee has imported Plant and machinery amounting to Rs. 81,05,333 during the relevant assessment year. So, foreign remittance of Rs 81,05,333 was made for 10 purchase of such plant and machinery. It is further submitted that such remittance was made exclusively for business purpose and such transaction is properly entered in the books of accounts of the assessee. The assessee has also filed its ITR on the basis of such books of accounts. Documentary evidences to support such transaction are enclosed herewith. Hence, keeping in view the above mentioned points, it is submitted that above stated information did not pertain to the assessee firm. Since the information does not pertain to the assessee, so question of escapement of income for the relevant assessment year does not arise at all. So, it is requested to your goodself to kindly accept the same and drop the notice issued u/s 148A. However, if your goodself have any specific information like date of transaction, amount, name of mutual fund, name of country to which remittance has been made etc. kindly provide the same, so that we could file our response accordingly. Hope you find the above information in order. Kindly apprise us in case of any queries. 12. The respondents still proceeded to issue an order under Clause (d) of Section 148A of the Act, wherein not only the contents of the earlier notice, but also the reply submitted by the petitioner were quoted in verbatim. 13. As regards the allegations of mutual funds, it was for the first time that the names of such persons were specified, as is evident from para 1 of the order, which reads as under:- “In consonance to the insight instructions No. 48 dated 24.02.2022, the information flagged through source of Insight Portal in accordance with the Risk Management strategy under the category “High Risk CRIU/VRU” has 11 been received in respect of the assessee for the F.Y. 2017-18 as under:- Nature of transaction Source of information Value Sale of Mutual funds Arun Kumar Jain, Rameshwar Dayal Jain/sameer Aggarwal, Yogender Kumar Jani 8,13,63,000/- Interest in held in assets Yogender Kumar Jain, Arun Kumar Jain 18,07,72,000/- Foreign remittances Oriental Bank Commerce 78,29,747/- 14. Had the respondents earlier referred to the names, obviously, the petitioner would have been in a better position to file its reply to the show cause. But that apart, it needs to be noticed that only reason given by the respondents for issuing the show cause notice by passing an order under Clause (d) of Section 148A is contained in para 3 thereof, which reads as under:- “3. The submission filed by the assessee are neither relevant as per the show cause notice nor tenable due to the lack of any supporting evidence. Since the assessee has not fully or truly disclosed the sources of income amounting to Rs. 26,99,62,000/- during the previous year 2017-18 relevant to AY. 2018-19 therefore, I have reasons to believe that the income to the extent of Rs. 26,99,62,000/- has escaped assessment for the Asstt.year 2018-19. Therefore, in this case I have reasons to 12 believe that the income to the extent of Rs 26,99,62,000/- has escaped assessment for the A.Y 2018-19.” 15. The Assessing Officer has virtually not considered the reply of the petitioner received in response to the show cause notice under Section 148A(b). That apart, the Assessing Officer has not passed a speaking order under Section 148A(d) and has not dealt with each and every objection in the reply submitted by the petitioner. In short, has violated not only the statutory provisions, but has also violated the basic principles of natural justice. Even the adverse material which needs to be referred, was not in the show cause notice thereby affording the proper opportunity of hearing to the petitioner. 16. In coming to such conclusion, we are fortified by the judgment of Delhi High Court in Best Buildwell (P.) Ltd. vs. Income Tax Officer. The relevant paragraphs of the same are reproduced as under:- “7. Having heard the counsel for parties, this Court is of the view that the impugned show cause notice as well as the impugned order under section 148A(d) of the Act are based on distinct and separate grounds. 8. The show cause notice primarily states that \"it is seen that the Petitioner has made purchases from certain non- filers. However no details or any information of these 13 entities was provided to the Petitioner. It is not understood as to how the Petitioner was to know which of the entities it dealt with were filers or non-filers! 9. Further, the impugned order states that a report was prepared against the Petitioner-company which concludes that the assessee had shown bogus purchases from bogus entities to suppress the profit of the company and reduce the tax liability during the years 2015-16 to 2020-21. However, no such report which forms the basis for the information on which the assessment was proposed to be reopened had been provided to the Petitioner. In fact, there are no specific allegations in the show cause notice to which the Petitioner could file a reply. 10. Keeping in view the aforesaid, the impugned order dated 30th March, 2022 passed under section 148A(d) and notice dated 31st March, 2022 issued under section 148 of the Act are quashed and the Respondents are given liberty to furnish additional materials in support of the allegations made in the show cause notice dated 16th March, 2022 within three weeks including reports, if any. Thereafter, the Assessing Officer shall decide the matter in accordance with law. With the aforesaid directions, the present writ petition along with pending application stands disposed of. The rights and contentions of all the parties are left open.” 17. In Divya Capital One (P.) Ltd vs. Assistant Commissioner of Income Tax, the Court held as under:- “NEW RE-ASSESSMENT SCHEME WAS INTRODUCED BY THE FINANCE ACT, 2021 WITH THE INTENT OF REDUCING LITIGATION AND TO PROMOTE EASE OF DOING BUSINESS 7. This Court is of the view that the new re-assessment scheme (vide amended sections 147 to 151 of the Act) was introduced by the Finance Act, 2021 with the intent of reducing litigation and to promote ease of doing business. In fact, the legislature brought in safeguards in the amended re-assessment scheme in accordance with the judgment of the Supreme Court in GKN Driveshafts (India) Ltd. v. ITO 14 (2002) 125 Taxman 963120031 259 ITR 19 before any exercise of jurisdiction to initiate re-assessment proceedings under section 148 of the Act. 8. This Court is further of the view that under the amended provisions, the term \"information\" in Explanation 1 to section 148 cannot be lightly resorted to so as to re-open assessment. This information cannot be a ground to give unbridled powers to the Revenue. Whether it is \"information to suggest under amended law or \"reason to believe under erstwhile law the benchmark of \"escapement of income chargeable to tax\" still remains the primary condition to be satisfied before invoking powers under section 147 of the Act. Merely because the Revenue-respondent classifies a fact already on record as \"information\" may vest it with the power to issue a notice of re-assessment under Section 148A(b) but would certainly not vest it with the power to issue a re-assessment notice under Section 148 post an order under Section 148A(d).” 18. It is because of such lapses on the part of the Assessing Officer while proceeding under Section 148A that the CBDT on 01.08.2022 had issued the following guidelines:- 1. In view of substitution of Section 147/148/149/151, amendments in Section 151A and insertion of Sections 148A in the Income- tax Act, 1961 (“Act”) vide Finance Act, 2021 and Finance Act, 2022, the procedure for issuance of notice under Section 148 stands amended. This has necessitated a revision of the existing guidelines on the subject issued vide F.No.247/140/2017-A&PC-1 dated 10.01.2018. In view of the above, in supersession of the earlier guidelines as referred above, the following new guidelines are hereby issued. 2. The salient features of Finance Act, 2021 and Finance Act, 2022 w.r.t. Section 148 to 151A ‘i.e. assessment/reassessment procedure of “Income Escaping Assessment” are as under: 2.1Before issuing notice u/s 148, the Assessing Officer (AO) must observe the following procedures laid down u/s 148A except in certain categories of cases (specified in the proviso to section 148A): 15 i. Notice under section 148 can be issued only if there is an information with the assessing officer which suggest that income chargeable to tax has escaped assessment in the case of assessee for the relevant assessment year. Information has been defined as per Explanation 1 of Section 148 of the Act. Explanation 1- Information with the AO which suggests that the income chargeable to tax has escaped assessment- (i) any information in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; (ii) any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act; or (iii) any information received under an agreement referred to in section 90 or section 90A of the Act; or (iv) any information made available to the Assessing Officer under the scheme notified under section 135A; or (v) any information which requires action in consequence of the order of a Tribunal or a Court ii. Further, explanation 2 to section 148 provides the incidence where assessing officer shall be deemed to have information. Explanation 2- where AO shall be deemed to have information suggesting escapement of income- (i) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A, on or after the 1st day of April, 2021, in the case of the assessee; or (ii) a survey is conducted under section 133A, other than under subsection (2A) of that section, on or after the 1st day of April, 2021, in the case of the assessee; or 16 iii) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (iv) the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books of account or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee where the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person. iii. Proviso’ to section 148A provides that in the following category of cases the provisions of Section 148A shall not apply, if, (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, 17 pertains or pertain to, or any information contained therein, relate to, the assessee; or (d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee. In other words, in above mentioned category of cases, notice under section 148 can be issued with the prior approval of specified authority without following the procedure mentioned in the section 148A. iv. The “specified authority” for the seeking approval for conducting enquiry u/s 148A(a), passing order u/s 148A(d) and issuance of notice u/s 148 shall be: Specified Authority for sanction for issue of notice u/s 148, 148A (a) and 148A (d) Time limit (Calculated from the end of the relevant AY) PCIT or PDIT or CIT or DIT (ref. Seetion 151(i)) Upto 3 years PCCIT or PDGIT or where there is no PCCIT or PDGIT then approval from CCIT or DGIT (ref Section 151(ii)) More than 3 years but upto 10 years v. Explanation 2 to section 148 of the Act provides that if a survey u/s 133A of the Act (other than under section 133A (2A)) was conducted in the case of the assessee on or after 1st April, 2021, the Assessing officer shall be deemed to have information which suggests that income chargeable to tax has escaped assessment. However, it is to clarify that the due procedure as prescribed u/s 148A needs to be followed in such cases also before issuing a notice u/s 148 of the (refer proviso to section 148A). vi. The AO shall, if required, undertake enquiries on any “information” received/available with him which suggests that the income chargeable to tax has escaped assessment in a previous year only with the prior approval of “specified authority”. vii. If the result of enquiry/information available suggests that the income chargeable to tax has escaped assessment, the AO shall provide an opportunity of being heard to the assessee by issuing a 18 show cause notice u/s 148A(b) of the Act. The said notice shall provide between 7 to 30 days’ time to the assessee for submitting the reply. A template of show cause notice is enclosed at Annexure-A1 viii. If an assessee requests for a personal hearing, the same may be dealt with following the principle of natural Justice by giving a reasonable period for compliance of notice specifying the date of hearing. ix. As per 3rd proviso to section 149, for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded. x. Further, as per 4th proviso to section 149, where immediately after the exclusion of the period referred to in the immediately preceding proviso (i.e. 3rd proviso), the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub- section shall be deemed to be extended accordingly. xi. The AO has to consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b) of section 148A before passing the order u/s 148A(d). xii. The AO shall mandatorily pass a speaking order u/s 148A(d) in all cases with the ‘prior approval of the specified authority’ ( Annexure- A2) for such order u/s. 148A (d), except in the cases covered in Para 2.1 (iii) above of these guidelines, irrespective of whether issuance of notice u/s 148 is being recommended or not. A template of such order u/s. 148A (d) is enclosed at Annexure- A3. xiii. Once an order under clause (d) of section 148A has been passed, no further approval is required for issuance of notice u/s 148 by the AO, with effect from 1.4.2022.* (*except for cases in which procedure under Section 148A is being applied for implementation of the Hon’ble Supreme Court’s judgment in the case of UOI Vs. Ashish Agrawal ( 2022 19 SCC online SC 543) dated 4.5.2022 for which specific instruction dated 11.5.2022 has been issued.) xiv. In the cases emanating out of Audit objection, AO has to ensure that extant instructions/ guidelines/ SOPs have been duly adhered with. xv. The confidential information such as from FIU, foreign jurisdictions, LEAs etc would be governed by respective guidelines governing sharing of such xvi. Information relevant to the case of the assessees’ income escaping assessment must be provided and Information not relevant to the case of the assessee must be redacted. 2.2 Notices along with annexures shall be sent to assessee as follows- Category of case Order/sanction document to be sent along with notice u/s 148 Cases covered under para 2.1 (iii) above ● Notice u/s. 148 (Annexure B) and ● prior approval of specified authority u/s. 151 of the Income Tax Act (Annexure A2). Other cases ● Notice u/s. 148 – (Annexure B), ● the Order u/s. 148A (d) – (Annexure A3) and ● approval of the specified authority for such order u/s 148A (d)- (Annexure A2) (Proforma of above notices/orders are illustrative and suggestive in nature and may be modified suitably based on the facts and circumstances of the case, if required.) 3. For the purposes of assessment or reassessment or recomputation under section 147 read with section 148/ 148A, the Assessing Officer may assess or reassess the income in respect of any other issue, which has escaped assessment, and such other issue comes to his notice subsequently in the course of the proceedings u/s 147, irrespective of the fact that the provisions of 20 section 148A have not been complied with, in respect of that issue. 4. The statutory timelines given in Section 149 for issue of notice specified shall not apply for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision or by a Court in any proceeding under any other law. 5. As far as possible the Assessing officer to make endeavor that at the stage of compliance of provisions u/s 148A/ issuance of notice u/s 148, all issues even if spread over more than one assessment year may be taken up simultaneously e. information suggesting escapement of income relating to a particular assessee for more than one AY may be reopened at one go. 6. The Assessing officer, as far as possible, may dispose all such pending matters relating to passing of orders u/s 148A(d)/ issuance of notice u/s 148 on a continuous basis rather than towards close to time barring date. This will enable passing of reasoned orders. Supervisory authorities are hereby advised to keep an effective supervision and monitor the progress of disposal of these work on continuous basis. 7. The present guidelines are only indicative and not exhaustive. The AO may take suitable decision on a case-to-case basis for the situations not specifically covered in these guidelines. However, in doing so, he/she shall follow the general principles enunciated in these guidelines. 8. These guidelines are to be brought to the notice of all officers working under your jurisdiction for information and compliance. 19. No doubt, these guidelines had not been notified at the time of issuance of notice, nonetheless, we find that such guidelines only explain what is required of an Assessing Officer while complying with the provisions of Section 148A 21 along-with its sub clauses i.e. Clauses a to d. The guidelines otherwise also clearly state that these are only indicative and not exhaustive and the Assessing Officer may take suitable decision on a case to case basis qua the situations not specified in these guidelines. 20. Accordingly, in view of the aforesaid discussion and reasons stated, the present petition is allowed and the impugned order issued under Clause 8 of the Income Tax Act, 1961 (Annexure P-5) is quashed. The respondents are directed to furnish additional material in support of the allegations made in the notice dated 19.03.2022 (Annexure P-3) within four weeks, including the reports, if any. Thereafter, the Assessing Officer shall decide the matter in accordance with law. 21. The writ petition is disposed of in the aforesaid terms. Pending applications, if any, also stand disposed of. ( Tarlok Singh Chauhan ) Judge December 26, 2022 ( Virender Singh ) (naveen) Judge "