Orissa High Court
Sahu Anadi Charan vs The Principal Chief on 9 August, 2023
IN THE HIGH COURT OF ORISSA AT CUTTACK
WP(C) No.13015 of 2023
Sahu Anadi Charan .... Petitioner
-Versus-
The Principal Chief .... Opposite Parties
Commissioner of Income Tax,
Bhubaneswar and others
Advocates appeared in this case :
For Petitioners : Dr. K. Sharma, Advocate
For Opposite Parties: Mr. Tushar Kanti Satapathy, Advocate,
Senior Standing Counsel (Revenue)
CORAM:
JUSTICE ARINDAM SINHA
JUSTICE SANJAY KUMAR MISHRA
JUDGMENT
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Date of hearing and Judgment : 09.08.2023
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ARINDAM SINHA, J.
1. Dr. Sharma, learned advocate appears on behalf of
petitioner-assessee. He submits, impugned is, inter alia, order
dated 28th March, 2023 of the Assessing Officer (AO) made
under clause (d) in section 148-A, Income Tax Act, 1961.
Purported basis for the order is information had by revenue
from inside portal under Risk Management System (RMS) that
during financial year 2015-16, relevant to assessment year
2016-17, his client had made huge deposits in his bank
account. The amount is alleged to be Rs.1,31,54,000/-.
2. He points out from said impugned order itself that
revenue issued letter dated 1st March, 2023 to Punjab National
Bank, Jajpur road branch for furnishing statement of bank
account in respect of his client. Reply of the bank, extracted in
said impugned order, clearly said that there was no such bank
account connected to PAN no.AAGHS2891R.
3. He draws attention to the counter filed, paragraph 10.
He submits, therein stands mentioned information had with
revenue that his client carries on business under PAN
no.AGCPS2177E. The show cause notice based on aforesaid
PAN no.AAGHS2891R is therefore completely without basis.
He seeks interference for quashing impugned order.
4. Mr. Satapathy, learned advocate, Senior Standing
Counsel appears on behalf of revenue and submits, the
impugned order does not warrant interference. Petitioner will
have adequate opportunity in the reassessment to ventilate his
grievance. So has been said by the Supreme Court in order
dated 2nd September, 2022 in petition for Special Leave to
Appeal (C) no.14823/2022 (Anshul Jain v. PCIT). Text of
the order is reproduced below.
"What is challenged before the High
Court was the re-opening notice under Section
148A (d) of the Income Tax Act, 1961. The
notices have been issued, after considering the
objections raised by the petitioner. If the
petitioner has any grievance on merits
thereafter, the same has to be agitated before the
Assessing Officer in the re-assessment
proceedings.
Under the circumstances, the High
Court has rightly dismissed the writ petition.
No interference of this Court is
called for.
The present Special Leave Petition
stands dismissed.
Pending applications stand disposed
of."
5. Before issuing the show cause notice, as appears from
impugned order, revenue had enquired of the bank in relation
to petitioner's PAN identity. The bank was clear in confirming
there is no account with the branch connected to the PAN
identity. Obviously revenue is not on the right track.
6. We are clear in our mind that proceeding for
reassessment needs now to be initiated on issuance of show
cause, reply thereto, order thereon and thereafter issuance of
notice under section 148. The preceding requirements on
inserted by amendment section 148-A must be complied with
by revenue before launching the reassessment proceeding.
Considering that a reassessment can be initiated only on
tangible material leading to reason of belief that income has
escaped assessment, in the facts and circumstances of this case,
petitioner has been able to demonstrate that there exists no
material, let alone tangible material.
7. Needless to say on quashing of the impugned order
made under section 148-A (d) there is no basis for subsequent
also impugned notice under section 148, issued to petitioner.
Same is also quashed and set aside.
8. The writ petition is allowed and disposed of.
(Arindam Sinha)
Judge
(S.K. Mishra)
Judge
Jyoti/RKS
Signature Not Verified
Digitally Signed
Signed by: JYOTIPRAVA BHOL
Reason: Authentication
Location: HIGH COURT OF ORISSA
Date: 09-Aug-2023 19:04:48
