Chaturbhuj Gattani v. Income -Tax Officer, Ward-1 Near B.r. Mirdha College,Manasar Road, Nagaur Rajasthanmanasar Road, Nagaur Rajasthan

D.B. Civil Writ Petition No. 10866/2023 Chaturbhuj Gattani S/o Shriniwas Gattani, Aged About 55Years, Ramanuj Sadan, Rajsamand (Rajasthan). ----Petitioner Versus 1. Income -Tax Officer, Ward-1 Near B.r. Mirdha College,Manasar Road, Nagaur RajasthanManasar Road, Nagaur Rajasthan 2. Principal Commissioner Of Income Tax, Jodhpur-1 Aaykar Bhawan, Paota C Road, Jodhpur (Rajasthan) Connected With ----Respondents D.B. Civil Writ Petition No. 10640/2023 Saroj Gattani W/o Shri Chatturbhuj Gattani, Aged About 51Years, Resident Of Ramanuj Sadan, Rasamand (Rajasthan). Versus ----Petitioner 1. Income Tax Officer, Ward-1 Near B.r. Mirdha College,Manasar Road, Nagaur RajasthanManasar Road, Nagaur Rajasthan 2. Principal Commissioner Of Income Tax, Jodhpur-1,Aayakar Bhawan, Paota-C Road, Jodhpur (Rajasthan)Aayakar Bhawan, Paota-C Road, Jodhpur (Rajasthan) ----Respondents For Petitioner(s) : Mr. Prateek GattaniFor Respondent(s): Mr. K.K. Bissa, Mr. Hargovind ChandaFor Respondent(s): Mr. K.K. Bissa, Mr. Hargovind Chanda HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE DR. JUSTICE NUPUR BHATI Judgment / Order 02/01/2024 (Per Hon’ble Vijay Bishnoi, J.) Since common question is involved in both these writpetitions, they are being decided together by this common order. For the sake of convenience, the facts of DBCWPNo.10866/2023 are taken into consideration. By way of these writ petitions, the petitioners havechallenged the orders dated 28.3.2023 and 29.3.2023 passed bythe respondent No.1 – the Income Tax Officer, Nagaur (for short‘the Jurisdictional Authority’) under Section 148A(d) of the IncomeTax Act, 1961 (for short ‘the IT Act’) and the consequential noticesdated 28.3.2023 and 29.3.2023 issued by the JurisdictionalAuthority under Section 148 of the IT Act. Brief facts of the case are that the petitioner is the proprietorof M/s Tirumala Enterprises and engaged in trading of marbles,stones and granite etc. The petitioner is regularly filing his incometax return and also filed income tax return for the assessmentyear 2019-20 on 29.10.2019 declaring total income of INR3,13,390/-. The Jurisdictional Authority issued a notice to the petitionersdated 13.3.2023 under Section 148A(b) of the IT Act to showcause why notice under Section 148 of the IT Act should not beissued in view of the information available with it. Along with thenotice, an annexure has also been supplied to the petitioner, wherein information available with the respondent-department isdisclosed. Along with the annexure, a photo copy of the InsightPortal is also attached. In response to the above notice, the petitioner filed adetailed reply dated 17.3.2023, wherein apart from submitting hisdefence, he has prayed that before proceeding further in thematter, he may be provided copy of the report of the DDIT/ADIT(Inv.) and complete details and particulars of fake entities on thebasis of which it has been alleged by the respondent-departmentthat the petitioner has received bogus invoice from fake and bogusentities. The Jurisdictional Authority, after considering the reply filedon behalf of the petitioner, has passed the order dated 28.3.2023under Section 148A(d) of the IT Act and subsequently issuednotice dated 28.3.2023 under Section 148 of the IT Act, which areunder challenge in these writ petitions. In response to the above notice, the petitioner filed adetailed reply dated 17.3.2023, wherein apart from submitting hisdefence, he has prayed that before proceeding further in thematter, he may be provided copy of the report of the DDIT/ADIT(Inv.) and complete details and particulars of fake entities on thebasis of which it has been alleged by the respondent-departmentthat the petitioner has received bogus invoice from fake and bogusentities. The Jurisdictional Authority, after considering the reply filedon behalf of the petitioner, has passed the order dated 28.3.2023under Section 148A(d) of the IT Act and subsequently issuednotice dated 28.3.2023 under Section 148 of the IT Act, which areunder challenge in these writ petitions. Learned counsel for the petitioner has argued that theimpugned order dated 28.3.2023 under Section 148A(d) of the ITAct as well as the consequential notice dated 28.3.2023 underSection 148 of the IT Act are in contravention of the principles ofnatural justice and, therefore, it is prayed that the same may bedeclared perse illegal and void. It is further argued that theimpugned order dated 28.3.2023 has been passed by theJurisdictional Authority without supplying complete material anddocuments on which the respondent-department has relied uponto the petitioner. Learned counsel for the petitioners has submitted that theHon’ble Supreme Court in Union of India (UOI) and Ors. Vs. Ashish Agarwal, reported in 2022 (7) ADJ 319, has issued acategorical direction in Para 8(i)that the Assessing Officer of therespondent-department is required to submit all the informationand material to the assessee, which have been relied upon by theRevenue so that the assessee can reply to the notice underSection 148A(b) of the IT Act. It is contended that with the notice dated 13.3.2023, issuedby the Jurisdictional Authority under Section 148A(b) of the ITAct, an annexure is enclosed, wherein information available withthe Jurisdictional Authority is disclosed. It states that as per theinformation available with the department, it is seen that duringthe financial year 2018-19, the assessee made transaction ofbogus purchase from fake entities to the tune of Rs.79,31,854/- inthe name of M/s Tirumala Enterprises. Apart from the aboveinformation, three other information about TDS, Statements andTime Deposits have been also disclosed. So far as the other three information are concerned, thepetitioner easily obtained details as it relates to the accounts ofpetitioner, however, so far as transaction of bogus purchase fromfake entities is concerned, the respondent-department has notprovided any specific particulars of alleged fake entities like theirname, invoice number, address, GST registration etc. It issubmitted that the petitioner, in his reply dated 17.3.2023, hasrequested for providing complete details and particulars ofalleged fake entities so that he can file a detailed response to it,however, no such information was provided and the JurisdictionalAuthority has passed the order dated 28.3.2023. Learned counsel for the petitioner has emphasized that theJurisdictional Authority has placed heavy reliance on the report ofthe DDIT/ADIT (Inv.) 1, Udaipur to the alleged bogus purchasefrom fake entities filed by the petitioner, but copy of the same hasnot been supplied to him and as such, sufficient material, onwhich, the Jurisdictional Authority has relied upon, has not beensupplied to the petitioner. Learned counsel for the petitioner has emphasized that theJurisdictional Authority has placed heavy reliance on the report ofthe DDIT/ADIT (Inv.) 1, Udaipur to the alleged bogus purchasefrom fake entities filed by the petitioner, but copy of the same hasnot been supplied to him and as such, sufficient material, onwhich, the Jurisdictional Authority has relied upon, has not beensupplied to the petitioner. Learned counsel for the petitioner has argued that theDivision Bench of this Court in the case of Micro Marbles PrivateLimited Vs. Office of the Income Tax Officer (DBCWPNo.13719/2021) decided on 4.1.2023, has categorically heldthat the material, on which, the assessing authority has placedreliance to initiate proceedings under Section 148 of the IT Act, isrequired to supply to the assessee. Learned counsel has alsoplaced reliance on the decision of Division Bench of Delhi HighCourt in Charu Chains and Jewels Pvt. Ltd. Vs. AssistantCommissioner of Income Tax, reported in (2023) 456 ITR352 and submitted that the underlined information/material,which has been made basis of assessment/re-assessmentproceedings, is required to be furnished to the assessee. Learned counsel for the petitioner, therefore, submitted thatin the present case, admittedly, the material on which, theJurisdictional Authority has placed reliance has not been suppliedto the petitioner, therefore, the order dated 28.3.2023 passed bythe Jurisdictional Authority under Section 148A(d) andconsequential notice dated 28.3.2023 under Section 148 of the ITAct are liable to be quashed and set aside. Per contra, learned counsel for the respondents hasvehemently opposed these writ petitions and argued that theinformation, on which, the Jurisdictional Authority has placedreliance, while issuing notice to the petitioner under Section 148of the IT Act, has been supplied to the petitioner and afterconsidering the reply filed on behalf of the petitioner in responseto the said notice, the impugned order dated 28.3.2023 underSection 148A(D) and the consequential notice dated 28.3.2023under Section 148 of the IT Act have been passed, which areperfectly in accordance with law. It is also submitted by learned counsel for the respondentsthat at the stage of issuing notice under Section 148A(b) of the ITAct, limited enquiry is required to be made to ascertain existenceof information, which suggests that the income chargeable to taxhas escaped assessment and the petitioner will have theopportunity to raise all his defence during the assessmentproceedings. In support of the above contention, learned counsel for therespondents has placed reliance on the decisions of the DivisionBenches of this Court in Jugal Kishore Lohiya Vs. PrincipalChief Commissioner of Income Tax & Ors. (DBCWPNo.8429/2023) decided on 4.8.2023 and M/s ChetakEnterprises Ltd. Vs. The Assistant Commissioner of IncomeTax (DBCWP No.7062/2022) decided on 20.3.2023. Heard learned counsel for the parties and perused thematerial available on record. For the adjudication of the controversy involved in thepresent writ petitions, it would be apposite to quote the existingprovisions of Sections 147, 148 and 148A of the IT Act.Sections 147, 148 and 148A of the IT Act read as under : “147. If any income chargeable to tax, in the case of anassessee, has escaped assessment for any assessmentyear, the Assessing Officer may, subject to the provisions ofsections 148 to 153, assess or reassess such income orrecompute the loss or the depreciation allowance or anyother allowance or deduction for such assessment year(hereafter in this section and in sections 148 to 153referred to as the relevant assessment year). Heard learned counsel for the parties and perused thematerial available on record. For the adjudication of the controversy involved in thepresent writ petitions, it would be apposite to quote the existingprovisions of Sections 147, 148 and 148A of the IT Act.Sections 147, 148 and 148A of the IT Act read as under : “147. If any income chargeable to tax, in the case of anassessee, has escaped assessment for any assessmentyear, the Assessing Officer may, subject to the provisions ofsections 148 to 153, assess or reassess such income orrecompute the loss or the depreciation allowance or anyother allowance or deduction for such assessment year(hereafter in this section and in sections 148 to 153referred to as the relevant assessment year). Provided that where an assessment under sub-section (3)of section 143 or this section has been made for therelevant assessment year, no action shall be taken underthis section after the expiry of four years from the end ofthe relevant assessment yeart. unless any incomechargeable to tax has escaped assessment for suchassessment year by reason of the failuret on the part of theassessee to make a return under section 139 or inresponse to a notice issued under sub-section (1) of section142 or section 148 or to disclose fully and truly all materialfactst necessary for his assessment, for that assessmentyear: Provided further that nothing contained in the firstproviso shall apply in a case where any income in relationto any asset (including financial interest in any entity)located outside India, chargeable to tax, has escapedassessment for any assessment year. Provided also that the Assessing Officer "may assess orreassess such income, other than the income involvingmatters which are the subject matters of any appeal,reference or revision, which is chargeable to tax and hasescaped assessment. Explanation 1.-Production before the Assessing Officer ofaccount books or other evidence from which materialevidence could with due diligence have been discovered bythe Assessing Officer will not necessarily amount todisclosure within the meaning of the foregoing proviso.Explanation 2-For the purposes of this section, thefollowing shall also be deemed to be cases where incomechargeable to tax has escaped assessment, namely:- (a) where no return of income has been furnished by theassessee although his total income or the total income ofany other person in respect of which he is assessable underthis Act during the previous year exceeded the maximumamount which is not chargeable to income-tax;(b) where a return of income has been furnished by theassessee but no assessment has been made and it isnoticed by the Assessing Officer that the assessee hasunderstated the income or has claimed excessive loss,deduction, allowance or relief in the return;(ba) where the assessee has failed to furnish a report inrespect of any international transaction which he was sorequired under section 92E(c) where an assessment hasbeen made, but- (i) income chargeable to tax has been underassessed; or (ii) such income has been assessed at too low a rate; or(iii) such income has been made the subject of excessiverelief under this Act; or (iv) excessive loss or depreciation allowance or any otherallowance under this Act has been computed; (ca) where a return of income has not been furnished bythe assessee or a return of income has been furnished byhim and on the basis of information or document receivedfrom the prescribed income-tax authority, under sub-section (2) of section 133C, it is noticed by the AssessingOfficer that the income of the assessee exceeds themaximum amount not chargeable to tax, or as the casemay be, the assessee has understated the income or hasclaimed excessive loss, deduction, allowance or relief in thereturn; (i) income chargeable to tax has been underassessed; or (ii) such income has been assessed at too low a rate; or(iii) such income has been made the subject of excessiverelief under this Act; or (iv) excessive loss or depreciation allowance or any otherallowance under this Act has been computed; (ca) where a return of income has not been furnished bythe assessee or a return of income has been furnished byhim and on the basis of information or document receivedfrom the prescribed income-tax authority, under sub-section (2) of section 133C, it is noticed by the AssessingOfficer that the income of the assessee exceeds themaximum amount not chargeable to tax, or as the casemay be, the assessee has understated the income or hasclaimed excessive loss, deduction, allowance or relief in thereturn; (d) where a person is found to have any asset (includingfinancial interest in any entity) located outside India. Explanation 3.-For the purpose of assessment orreassessmenttt under this section, the Assessing Officermay assess or reassess the income in respect of any issue,which has escaped assessment, and such issue comes tohis notice subsequently in the course of the proceedingsunder this section, notwithstanding that the reasons forsuch issue have not been included in the reasons recordedunder sub-section (2) of section 148. Explanation 4.-For the removal of doubts, it is herebyclarified that the provisions of this section, as amended bythe Finance Act, 2012, shall also be applicable for anyassessment year beginning on or before the 1st day ofApril, 2012." Explanation.-For the purposes of assessment orreassessment or recomputation under this section, theAssessing Officer may assess or reassess the income inrespect of any issue, which has escaped assessment, andsuch issue comes to his notice subsequently in the courseof the proceedings under this section, irrespective of thefact that the provisions of section 148A have not beencomplied with.] 148. Before making the assessment, reassessment orrecomputation under section 147, and subject to theprovisions of section 148A, the Assessing Officer shall serveon the assessee a notice, along with a copy of the orderpassed, if required, under clause (d) of section 148A,requiring him to furnish within a period of three monthsfrom the end of the month in which such notice is issued orsuch further period as may be allowed by the AssessingOfficer on the basis of an application made in this regard bythe assessee), a return of his income or the income of anyother person in respect of which he is assessable under thisAct during the previous year corresponding to the relevantassessment year, in the prescribed form and verified in theprescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall,so far as may be, apply accordingly as if such return were areturn required to be furnished under section 139:Provided that no notice under this section shall be issuedunless there is information with the Assessing Officer whichsuggests that the income charge- able to tax has escapedassessment in the case of the assessee for the relevantassessment year and the Assessing Officer has obtainedprior approval of the specified authority to issue suchnotice: Provided further that no such approval shall be requiredwhere the Assessing Officer, with the prior approval of thespecified authority, has passed an order under clause (d) ofsection 148A to the effect that it is a fit case to issue anoticeunderthissection:]Provided also that any return of income, required to befurnished by an assessee under this section and furnishedbeyond the period allowed shall not be deemed to be areturnundersection139.] Provided further that no such approval shall be requiredwhere the Assessing Officer, with the prior approval of thespecified authority, has passed an order under clause (d) ofsection 148A to the effect that it is a fit case to issue anoticeunderthissection:]Provided also that any return of income, required to befurnished by an assessee under this section and furnishedbeyond the period allowed shall not be deemed to be areturnundersection139.] Explanation 1. For the purposes of this section and section148A, the informa tion with the Assessing Officer whichsuggests that the income chargeable to tax has escapedassessmentmeans,-(i) any information in the case of the assessee for therelevant assessment year in accordance with the riskmanagement strategy formulated by the Board from time totime;Jor (ii) any audit objection to the effect that the assessment inthe case of the assessee for the relevant assessment yearhas not been made in accordance with the provisions of thisAct; or (iii) any information received under an agreement referredto in section 90 or section 90A of the Act; or (iv) any information made available to the Assessing Officerunder the scheme notified under section 135A; or (v) any information which requires action in consequence ofthe order of a Tribunal or a Court. Explanation 2-For the purposes of this section, where,(i) a search is initiated under section 132 or books ofaccount, other documents or any assets are requisitionedunder section 132A, on or after the 1st day of April, 2021,inthecaseoftheassessee,or(ii) a survey is conducted under section 133A, other thanunder sub- section (2A) [*] of that section, on or after the1st day of April, 2021, in the case of the assessee; or, (iii) the Assessing Officer is satisfied, with the prior approvalof the Principal Commissioner or Commissioner, that anymoney, bullion, jewellery or other valuable article or thing,seized or requisitioned under section 132 or section 132A incase of any other person on or after the 1st day of April,2021,belongstotheassessee;or(iv) the Assessing Officer is satisfied, with the prior approvalof Principal Commissioner or Commissioner, that any booksof account or docu- ments, seized or requisitioned undersection 132 or section 132A in case of any other person onor after the 1st day of April, 2021, pertains or pertain to, orany information contained therein, relate to, the assessee,the Assessing Officer shall be deemed to have informationwhich suggests that the income chargeable to tax hasescaped assessment in the case of the assessee [where] thesearch is initiated or books of account, other documents orany assets are requisitioned or survey is conducted in thecase of the assessee or money, bullion, jewellery or othervaluable article or thing or books of account or documentsare seized or requisitioned in case of any other person. Explanation 3.-For the purposes of this section, specifiedauthority means the specified authority referred to insection 151.]” 148A. The Assessing Officer shall, before issuing any noticeunder section 148,— (a) conduct any enquiry, if required, with the prior approvalof specified authority, with respect to the information which suggests that the income chargeable to tax has escapedassessment; (b) provide an opportunity of being heard to the assessee, 23[***] by serving upon him a notice to show cause withinsuch time, as may be specified in the notice, being not lessthan seven days and but not exceeding thirty days from thedate on which such notice is issued, or such time, as maybe extended by him on the basis of an application in thisbehalf, as to why a notice under section 148 should not beissued on the basis of information which suggests thatincome chargeable to tax has escaped assessment in hiscase for the relevant assessment year and results of enquiryconducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, inresponse to the show-cause notice referred to in clause (b); suggests that the income chargeable to tax has escapedassessment; (b) provide an opportunity of being heard to the assessee, 23[***] by serving upon him a notice to show cause withinsuch time, as may be specified in the notice, being not lessthan seven days and but not exceeding thirty days from thedate on which such notice is issued, or such time, as maybe extended by him on the basis of an application in thisbehalf, as to why a notice under section 148 should not beissued on the basis of information which suggests thatincome chargeable to tax has escaped assessment in hiscase for the relevant assessment year and results of enquiryconducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, inresponse to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on recordincluding reply of the assessee, whether or not it is a fitcase to issue a notice under section 148, by passing anorder, with the prior approval of specified authority, withinone month from the end of the month in which the replyreferred to in clause (c) is received by him, or where nosuch reply is furnished, within one month from the end ofthe month in which time or extended time allowed to furnisha reply as per clause (b) expires: Provided that the provisions of this section shall not applyin a case where,— (a) a search is initiated under section 132 or books ofaccount, other documents or any assets are requisitionedunder section 132A in the case of the assessee on or afterthe 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approvalof the Principal Commissioner or Commissioner that anymoney, bullion, jewellery or other valuable article or thing,seized in a search under section 132 or requisitioned undersection 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 approvalof the Principal Commissioner or Commissioner that anybooks of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case ofany other person on or after the 1st day of April, 2021,pertains or pertain to, or any information contained therein,24[relate to, the assessee; or (d) the Assessing Officer has received any informationunder the scheme notified under section 135A pertaining toincome chargeable to tax escaping assessment for anyassessment year in the case of the assessee.] Explanation.—For the purposes of this section, specifiedauthority means the specified authority referred to insection 151.]” As per unamended Section 147 of the IT Act, the AssessingOfficer could initiate assessment/reassessment proceedings only ifhe has “reason to believe” that the income chargeable to tax of anassessee has escaped assessment, however, with the amendmentin Sections 147, 148 and insertion of Section 148A vide FinanceAct 2021 w.e.f. 1.4.2021, the assessment/reassessmentproceedings can be initiated by the Assessing Officer on receivinginformation only. In other words, the requirement of AssessingOfficer of having “reason to believe” is no more there for initiatingassessment/reassessment proceedings in a case of escapedassessment in respect of income chargeable to tax. Section 148A of the IT Act provides procedure required to befollowed by the Assessing Officer before issuance of notice underSection 148 of the IT Act to any assessee. Section 148A(a) of theIT Act empowers the Assessing Officer to conduct any enquiry, ifrequired, with the prior approval of specified authority in relationto any information regarding chargeable income to tax whichescaped assessment. Section 148A(b) of the IT Act mandates thatthe Assessing Officer shall provide an opportunity of hearing to the Section 148A of the IT Act provides procedure required to befollowed by the Assessing Officer before issuance of notice underSection 148 of the IT Act to any assessee. Section 148A(a) of theIT Act empowers the Assessing Officer to conduct any enquiry, ifrequired, with the prior approval of specified authority in relationto any information regarding chargeable income to tax whichescaped assessment. Section 148A(b) of the IT Act mandates thatthe Assessing Officer shall provide an opportunity of hearing to the concerned assessee by issuing a show cause notice within thirtydays, not less than seven days or within the extended time thatwhy notice under Section 148 of the IT Act be not issued on thebasis of information available in relation to the income chargeableto tax which escaped assessment. As per Section 148A(c) of theIT Act, if any reply is filed by the assessee, the Assessing Officershall consider the same. Section 148A(d) mandates that theAssessing Officer shall decide, on the basis of material available onrecord including reply of the assessee, whether or not it is a fitcase to issue notice to the assessee under Section 148 of the ITAct by passing an order within specified time as prescribed withprior approval of the authority. Proviso to Section 148A of the ITAct speaks about exceptions where proceedings cannot beinitiated under Section 148A, however in the facts of the presentcase, the same are not relevant, therefore, we are not offeringany comments on it. As per the above scheme, if an Assessing Officer is in receiptof any information, which suggests that any income chargeable totax has escaped assessment, he may conduct any enquiry, ifrequired, with prior approval of specified authority and afterproviding opportunity of hearing to the assessee, the concernedauthority can pass order whether or not it is a fit case to issuenotice under Section 148 of the IT Act. The “information”, on the basis of which, the AssessingOfficer can proceed under Section 148A of the IT Act is explainedin Explanation 1 and 2 of Section 148 of the IT Act. We are of the view that Section 148A(b) mandates only tosupply information to the assessee and not the material, on the basis of which, the Assessing Officer has formed prima facieopinion that any chargeable income to tax has escapedassessment. It is settled that the words used in the provisions of taxingstatute are required to be given their plain meaning and nothingcan be implied from or read in it. In our opinion the plain reading of Section 148A clearlysuggests that the Assessing Officer is required to supplyinformation before issuing notice under Section 148A in theprescribed manner and not the other material on the basis ofwhich it has formed prima facie opinion that income of theassessee chargeable to tax has escaped assessment. We found support from the judgments of the High Court ofAllahabad rendered in Deepak Kumar Yadav Vs. PrincipalCommissioner of Income Tax and Ors., reported in2023/AHC/102834 and High Court of Madhya Pradesh in AmritHomes Private Limited Vs. Deputy Commissioner of IncomeTax and Another, reported in 2023 SCC Online MP 2359. The High Court of Allahabad in Deepak Kumar’s case(supra), while dealing with Section 148A of the IT Act, has held asunder : “9. Reading of Section 148A reveals that the assessingauthority shall, before issuing any notice under section 148conduct any enquiry, if required, with the prior approval ofspecified authority, with respect to the information whichsuggests that the income chargeable to tax has escapedassessment. On receipt of such information the AssessingOfficer is required to provide an opportunity of being heardto the assessee, in the manner specified, as to why a notice The High Court of Allahabad in Deepak Kumar’s case(supra), while dealing with Section 148A of the IT Act, has held asunder : “9. Reading of Section 148A reveals that the assessingauthority shall, before issuing any notice under section 148conduct any enquiry, if required, with the prior approval ofspecified authority, with respect to the information whichsuggests that the income chargeable to tax has escapedassessment. On receipt of such information the AssessingOfficer is required to provide an opportunity of being heardto the assessee, in the manner specified, as to why a notice under Section 148 of the Act should not be issued on thebasis of information which suggests that income chargeableto tax has escaped assessment in his case for the relevantassessment year and results of enquiry conducted as perclause (a), if any. The assessing authority is then requiredto consider the reply of the assessee, if any, in response tothe show cause notice referred to in Clause (b). It isthereafter that the assessing authority has to decide, on thebasis of material available on record including reply of theassessee, whether or not it is a fit case to issue a noticeunder Section 148 by passing an order in the mannerspecified. The proviso exempts the category of cases whichare not covered by Section 148A. The proviso to section148A has no applicability in the facts of the present caseand, therefore, it does not require any examination. 10. The statutory scheme is, therefore, clear that theassessing authority on receipt of information which suggeststhat the income chargeable to tax has escaped assessmentmay conduct any enquiry in the matter, if required, andthen provide an opportunity of being heard to the assesseeby serving upon him a notice under clause (b). On receipt ofreply of assessee to the notice referred to in clause (b) theAssessing Officer on the basis of material available onrecord including the reply of assessee decide whether or notit is a fit case to issue a notice under Section 148. 11. The scheme for reassessment of escaped incomeintroduced vide Finance Act, 2021 provides for anopportunity to the assessee before issuance of notice undersection 148 of the Act of 1961. After such notice to theassessee and consideration of reply of assessee in responseto the notice the assessing authority has to decide on thebasis of material available on record by passing an orderunder section 148A(d) whether a notice under section 148is fit to be issued in the case. The consideration at the stageof passing order under section 148A(d) is thus limited toascertainment of information with the Assessing Officer thatincome of assessee has escaped assessment to tax. Final determination on the question whether income of assesseehas actually escaped assessment is then to be made afternotice under section 148, by passing an order ofassessment or reassessment under section 147, subject tothe provisions of section 148 to 153 of the Act of 1961. determination on the question whether income of assesseehas actually escaped assessment is then to be made afternotice under section 148, by passing an order ofassessment or reassessment under section 147, subject tothe provisions of section 148 to 153 of the Act of 1961. 12. The Act of 1961 does not contemplate any detailedadjudication on the merits of information available with theAssessing Officer at the stage of passing order undersection 148A(d) of the Act of 1961. In our considered viewthere is a specific purpose for not introducing any furtherenquiry or adjudication in the statute, on the correctness orotherwise of the information, at this stage. The reason for itis obvious. Under the scheme of the Act a detailedprocedure has been provided under Section 148 forissuance of notice whereafter the assessing authority has todetermine, in the manner specified, whether income hasescaped assessment and the defence of assessee, on allpermissible grounds, remains open to be pressed at suchstage. The ultimate determination made by the assessingauthority under Section 147 for reassessment is otherwisesubject to appeal under Section 246-A of the Act. Merits ofthe information referable to Section 148A thus remainssubject to the reassessment proceedings initiated videnotice under Section 148 of the Act. It is for this reason thatissues which require determination at the stage ofreassessment proceedings and in respect of whichdepartmental remedy is otherwise available are not requiredto be determined at the stage of decision by the assessingauthority under Section 149A(d). The scope of decisionunder Section 148A(d) is limited to the existence orotherwise of information which suggests that incomechargeable to tax has escaped assessment. 13. xxxxxx 14. It is only to the extent of availability or otherwise ofinformation suggesting that income has escapedassessment that the scope of enquiry rests under Section 148A(d). The correctness or otherwise of information is anaspect to be gone into later by the assessing authority atthe stage of proceedings under Section 148 of the Act forreassessment. Any other interpretation, in our view, is notcountenanced in the scheme of the Act of 1961. 15. The information with the Assessing Officer whichsuggests that the income chargeable to tax has escapedassessment has been defined in Explanation 1 to the secondproviso to section 148 of the Act which is already extractedabove. There is no challenge to the information contained inthe notice under section 148A(b) of the Act on the groundthat the information available with the Assessing Officer isnot referable to Explanation 1 to the second proviso tosection 148 of the Act. The Finance Act, 2021 is otherwisenot under challenge. We are, therefore, of the consideredopinion that the challenge to the information, by theassessee, on the defence setup in reply to show causenotice merits no further consideration at the stage ofdecision under section 148A(d) of the Act.” The High Court of Madhya Pradesh in Amrit Homes PrivateLimited’s case (supra), while considering Section 148A of the ITAct has held as under : “7. From the aforesaid, it is evident as day light that thepresent petition which is also against the order u/S 148A(d)and the consequential notice u/S 148 of IT Act needs to beconsidered on the anvil of the grounds raised in this petitionand also on the anvil of foundational prerequisites u/S 148Ajustifying issuance of an order u/S 148A (d) followed bynotice u/S 148. 8. Section 148A was inserted in the IT Act by Finance Act,2021 dated 01.04.2021, primarily to give effect to the ratiolaid down by Apex Court in GKN Driveshafts (India) Ltd. v.Income Tax Officer, (2003) 1 SCC 72 which inter alia heldthus: The High Court of Madhya Pradesh in Amrit Homes PrivateLimited’s case (supra), while considering Section 148A of the ITAct has held as under : “7. From the aforesaid, it is evident as day light that thepresent petition which is also against the order u/S 148A(d)and the consequential notice u/S 148 of IT Act needs to beconsidered on the anvil of the grounds raised in this petitionand also on the anvil of foundational prerequisites u/S 148Ajustifying issuance of an order u/S 148A (d) followed bynotice u/S 148. 8. Section 148A was inserted in the IT Act by Finance Act,2021 dated 01.04.2021, primarily to give effect to the ratiolaid down by Apex Court in GKN Driveshafts (India) Ltd. v.Income Tax Officer, (2003) 1 SCC 72 which inter alia heldthus: “5. We see no justifiable reason to interfere with theorder under challenge. However, we clarify that whena notice under Section 148 of the Income Tax Act isissued, the proper course of action for the noticee isto file return and if he so desires, to seek reasons forissuing notices. The Assessing Officer is bound tofurnish reasons within a reasonable time. On receiptof reasons, the noticee is entitled to file objections toissuance of notice and the Assessing Officer is boundto dispose of the same by passing a speaking order. Inthe instant case, as the reasons have been disclosedin these proceedings, the Assessing Officer has todispose of the objections, if filed, by passing aspeaking order, before proceeding with theassessment in respect of the abovesaid fiveassessment years.” 9. Section 148A on becoming a part of the Statute Bookprovided an additional opportunity to the assessee of beingheard to the assessee before reopening case of escapedassessment. 10. From bare perusal of newly inserted Section 148A, it isobvious that it statutorily provides for the followingprerequisite before issuance of notice in cases of escapedassessment. A. Conduction of inquiry with prior approval ofspecified authority in regard to information whichsuggests that certain income chargeable to tax hasescaped the assessment. specified authority in regard to information whichsuggests that certain income chargeable to tax hasescaped the assessment. B. For conducting the aforesaid inquiry, a notice toshow-cause is required to be served on the assesseewithin the prescribed time, requiring assessee toexplain as to why notice u/S 148 should not be issuedon the basis of information which suggests thatincome chargeable to tax has escaped assessment. C. The Assessing Officer is required to consider thereply of the assessee to the show-cause notice. D. The nature of inquiry contemplated by Section148A is not a detailed one. The purpose of this inquiryis to communicate to assessee that Assessing Officer is in possession of information suggesting that certain income of assessee which is chargeable to tax hasescaped assessment. This communication is made byissuance of show-cause notice which should containenough information and reasons to reveal the saidintention of the Assessing Officer. Thereafter, theassessee on receiving the show-cause notice isrequired to file reply. 11. The show-cause notice thus should be reasoned enoughto enable the assessee to know the mind of the AssessingOfficer as regards factum of certain income having escapedassessment and his intention to re-open assessment of suchincome. This is possible only when the show-cause noticecontains enough information to disclose the intention of theAssessing Officer so as to afford reasonable opportunity toassessee to respond. The contents of the show-cause noticethus should be precise and concise satisfying the concept ofreasonable opportunity. 11. The show-cause notice thus should be reasoned enoughto enable the assessee to know the mind of the AssessingOfficer as regards factum of certain income having escapedassessment and his intention to re-open assessment of suchincome. This is possible only when the show-cause noticecontains enough information to disclose the intention of theAssessing Officer so as to afford reasonable opportunity toassessee to respond. The contents of the show-cause noticethus should be precise and concise satisfying the concept ofreasonable opportunity. 12. This Court hastens to add at this juncture that thisinquiry as explained above cannot be a detailed one whereassessee is given opportunity of adducing evidence insupport of his defence/response. However, this inquiryincludes within its ambit, the obligation of the AssessingOfficer to supply reasons which are suggestive of a primafacie case revealing income chargeable to tax havingescaped assessment. 13. Pertinently, the statute [See 148A(b)] does not obligethe Assessing Officer to supply the relevantmaterial/evidence which are the foundation for theAssessing Officer to come to the prima facie view thatincome chargeable to tax has escaped assessment. This isbecause neither in the judgment of the Apex Court in thecase of GKN Driveshafts (India) Ltd. (supra) nor in Section 148A any such indication can be gathered. 14. The only duty cast upon the Assessing Officer is tosupply information by mentioning the same in the show-cause notice issued u/S 148A(b) of IT Act. 15. This Court has culled out the foundational prerequisite of Section 148A, as aforesaid, to emphasize that if the inquiry contemplated in Section 148A is interpreted to meana detailed inquiry where both sides can seek and adduceevidence/material (documentary/ocular), then the entireobject behind Section 148A would stand defeated. 16. The object behind Section 148A as is evident from thefindings in the fountainhead decision of GKN Driveshafts(India) Ltd. (supra), is to enable the assessee to beinformed of the reasons and information suggesting thatincome chargeable to tax has escaped assessment and,therefore, in turn to empower the assessee to prepare andfile an effective reply and thereafter the Assessing Officer topass an order u/S 148A(d), followed by issuance of noticeu/S 148 of IT Act. 17. The object behind insertion of Section 148A by the Legislature w.e.f. 01.04.2021 inter alia appears as follows:— (a) to prevent rampant and casual issuance of noticeu/S. 148 by the Revenue; (b) to save unnecessary harassment to the assesseeof being subjected to re-opening a case under Section148; (c) to save the Revenue of the time and energy whichmay be vested pursuing frivolous and fruitlessproceedings u/S 148.may be vested pursuing frivolous and fruitlessproceedings u/S 148. 18. It is settled in tax jurisprudence that taxing statute is tobe interpreted literally. There is no intendment to taxingstatute. Nothing can be implied from or read into a taxingstatute. The words used in taxing statutory provision arerequired to be given their plain meaning. [See : CapeBrandy v. IRC, L, [1921] 1 K.B. 64, State of Bombay v.Automobile and Agricultural Industries Corporation, (1961)12 STC 122 Para 5, Federation of A.P. Chambers v. State ofAndhra Pradesh, (2000) 6 SCC 550 Para 7, State of WestBangal v. Kesoram Industries Ltd., (2004) 10 SCC 201 Para106, State of Jharkhand v. Ambay Cements, (2005) 1 SCC368 Para 24, 25 and 26, Ajmera Housing Corporation v.Commissioner Income Tax, (2010) 8 SCC 739 Para 36,Deputy Commissioner of Income Tax v. Ace Multi AxesSystem Limited, (2018) 2 SCC 158, Commissioner ofCustoms (Import) Mumbai v. Dilip Kumar Company, (2018) 9 SCC 1 Para 24 and 25, Checkmate Services Pvt. Ltd. v.Commissioner Income Tax, (2023) 6 SCC 451 Para 55 and56]. 9 SCC 1 Para 24 and 25, Checkmate Services Pvt. Ltd. v.Commissioner Income Tax, (2023) 6 SCC 451 Para 55 and56]. 19. Applying this principle of interpretation of taxingstatute, it is obvious from reading of Section 148A that itdoes not expressly provide for supply of anymaterial/evidence in support of the show-cause notice u/S148A(b). Thus this Court has no hesitation to hold thatstatutory provision u/S 148A does not obligate theAssessing Officer to supply any material/evidence, providedthe show-cause notice contains reasons disclosing the mindof the Assessing Officer of nursing the prima facie viewsuggestive of a case