Cwjc/19373/2024 Of Healing Touch Hospital v. Principal Chief Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT PATNACivil Writ Jurisdiction Case No.19373 of 2024 ====================================================== Healing Touch Hospital a partnership firm having is office at Church Road,Gandhi Maidan near Government Bus Stand Gaya 823001 through its partnerDr Vimlendu Vimal (Male, aged about 55 years) son of Shri Surendra Prasadresident of South Church Road, Healing Touch Hopital, Behind Kochar PetrolPump, P.O. - Head Post Office, Gaya and P.S. - Civil Line, Gaya Bihar -823001. ... ... Petitioner Versus 1.Principal Chief Commissioner of Income Tax having its Office at CentralRevenue Building, Bir Chand Patel Path, Patna 800001.Revenue Building, Bir Chand Patel Path, Patna 800001. 2.Director General of Income Tax (Inv.), having it office at Central RevenueBuilding, Bir Chand Patel Path, Patna 800001.Building, Bir Chand Patel Path, Patna 800001. 3.Principal Commissioner of Income Tax, having its office at Central RevenueBuilding, Bir Chand Patel Path, Patna 800001.Building, Bir Chand Patel Path, Patna 800001. 4.Dy. Commissioner of Income Tax, Central Circle, having its office at CentralRevenue Building, Annexe, Bir Chand Patel Path, Patna 800001.Revenue Building, Annexe, Bir Chand Patel Path, Patna 800001. 5.Asst. Commissioner of Income Tax, Central Circle, having its Office atCentral Revenue Building, Annexe, Bir Chand Patel Path, Patna 800001.Central Revenue Building, Annexe, Bir Chand Patel Path, Patna 800001. ... ... Respondents ====================================================== Appearance :For the Petitioner/s: Mr. D.V.Pathy, Sr. Advocate Mr. Sadashiv Tiwary, Advocate Mr. Hiresh Karan, AdvocateFor the Respondent/s: Ms. Archana Sinha @ Archana Shahi, Sr. Advocate Ms. Swarna Roy, Advocate Ms. Richa Rajiv Singh, Advocate Ms. Komal, Advocate ====================================================== CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD and HONOURABLE MR. JUSTICE ASHOK KUMAR PANDEYCAV JUDGMENT(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD) Date : 08-08-2025 The present writ application has been preferred seeking the following reliefs:- “(i) The notice dated 25.09.2024 (as contained inAnnexure-P11) under Section 148 of the Income TaxAct, 1961 issued by the respondent no.4 after threeyears from the end of the Assessment Year 2020-21 without sanction from a specified authority namely,the Principal Chief Commissioner of Income Tax orthe Director General of Income Tax (Inv.) mandatedin Section 151 of the Income Tax Act, 1961(hereinafter called the Act); without issue of noticeunder Section 143(2) within the prescribed timedespite availability thereof on the same set ofmaterial in the knowledge and possession of therespondent no.3 being wholly without jurisdiction beset aside and quashed. (ii) The order dated 25.09.2024 (as contained inAnnexure-P10) passed by the respondent no.4 underSection 148A(d) without sanction from the specifiedauthority mentioned in section 151 of the Act andwithout consideration of the reply of the assesseebeyond the time limit prescribed in section 148A(d)of the Act being wholly without jurisdiction be set-aside and quashed. (iii) For granting any other relief(s) to which thepetitioner is otherwise found entitled to.” Brief facts of the case 2. The petitioner is a partnership firm though one of it’s partners of the firm is the citizen of India, they derived incomeunder the head ‘income from business’. A survey was conductedby the authorized officers of the Income Tax Department(hereinafter referred to as the ‘Department’) in terms of Section133A of the Income Tax Act, 1961 (hereinafter referred to as the (iii) For granting any other relief(s) to which thepetitioner is otherwise found entitled to.” Brief facts of the case 2. The petitioner is a partnership firm though one of it’s partners of the firm is the citizen of India, they derived incomeunder the head ‘income from business’. A survey was conductedby the authorized officers of the Income Tax Department(hereinafter referred to as the ‘Department’) in terms of Section133A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act of 1961’) in the business premises of the petitioner. Certaindocuments were seized after preparation of inventories. 3. It is the case of the petitioner that the firm filed itsincome tax return for the financial year ending 31.03.2020 relevant to the Assessment Year 2020-21 along with audit report, profit andloss account and the balance sheet. 4. The petitioner was served with a show cause noticeunder Section 148A(b) of the Act of 1961 on the grounds inter-aliathat the Department had information which suggest that theincome chargeable to tax for the Assessment Year 2020-21 hasescaped assessment within the meaning of Section 147 of the Actof 1961. A copy of the notice dated 29.03.2024 issued underSection 148A(b) of the Act of 1961 has been brought on record asAnnexure-P2. Submissions on behalf of the petitioner 5. Learned senior counsel for the petitioner submits thaton receipt of the notice (Annexure-P2), the petitioner found thatthe notice was not containing any information or any otherdocuments in support of the same. Therefore, a request was madevide Annexure-P3 to the Department to make available the same inorder to answer the allegations. 6. It is submitted that the Department issued anothernotice dated 08.04.2024 (Annexure-P4), thereafter, the noticedated 27.05.2024 (Annexure-P6). The petitioner filed writtensubmissions in which a plea was taken inter-alia that the noticeonly attaches verification details but the information and the supporting materials which led to the issuance of notice were notsupplied to the petitioner. It is the case of the petitioner that adetail explanation as regards the actual receipts as per materialfound in course of survey and the disclosure made by thepetitioner and its partners Dr. Vimlendu Vimal and Dr. DeepawaliVimal in their respective income tax returns, were filed. 7. The petitioner was served with another notice dated30.07.2024 under Section 148A(b) of the Act of 1961 granting thefirm an opportunity of being heard. A date of hearing i.e.06.08.2024 at 12.30 PM was fixed. The petitioner filed a detailsubmission wherein a plea was taken that the notice underreference was fourth notice and that the firm had not asked for anytime to reply to the notice. In its written submissions (Annexure-P9), the petitioner submitted that a reference to sub-clause (d) ofSection 148 of the Act of 1961 would show that the order underthe said sub-clause is to be passed within a period of one monthfrom 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 withinone month from the end of the month in which time or extendedtime allowed to furnish a reply as per clause (b) expires. It issubmitted that the exclusions in the proviso appended to section148A has no application in the present case. 8. Learned senior counsel for the petitioner furthersubmits that the petitioner in the present case had only asked forsupply of relevant documents and the materials on the basis ofwhich the notice was issued. The petitioner had not asked for anytime to reply to the notice. Therefore, since no extension of timewas prayed for by the petitioner, the question of allowing anyfurther time in terms of sub-clause (b) does not arise. According tohim, the period of limitation as provided in sub-clause (d) ofSection 148A of the Act of 1961 is one month from the end ofmonth in which the reply referred to in clause (c) of the Act of1961 is received. This clause is to be construed strictly with onlyexception of “extended time allowed” to furnish a reply as perclause (b) expires. It is his submission that one month from the endof the month in which the reply is received under clause (c) of theAct of 1961 is to be reckoned from 03.06.2024, therefore, theorder under sub-clause (d) was to be passed on or before31.07.2024 but the notice granting an opportunity of hearing wasissued on 30.07.2024 by which a date of hearing was fixed on06.08.2024. This would be a case of assumed extension whichcannot be allowed. Learned senior counsel, therefore, submits thatthe impugned order would be barred by law of limitation and the continuance of proceeding under sub-clause (d) would be whollyillegal and without jurisdiction. 9. Learned senior counsel for the petitioner furthersubmits that Section 148A of the Act of 1961 provides for themanner of passing an order thereunder. According to him, thereshould be a clear finding that it is a fit case for issuance of noticeunder Section 148 of the Act. It is a statutory requirement to stepinto the arena of reassessment after the amendment by the FinanceAct, 2021. Reliance has been placed on the judgment of theHon’ble Supreme Court in the case of Union of India VS. AshishAgarwal reported in 2022 SCC OnLine SC 543 in which theHon’ble Supreme Court has taken note of the amendment carriedout by the Finance Act, 2021. 10. Learned senior counsel for the petitioner submitsthat in this case the sanction of the specified authority as requiredunder Section 151 of the Act of 1961 for the purpose of Section148 and Section 148A of the Act of 1961 has not been obtained.According to him, in the cases where more than three years haveelapsed from the end of the relevant assessment year the sanctionis required to be obtained from the statutory authority i.e. thePrincipal Chief Commissioner of Income Tax or the DirectorGeneral of Income Tax (Investigation). It is submitted that in the present case, notice only mentioned about grant of sanction by thePrincipal Commissioner, Patna. It is submitted that in view ofSection 151(ii) of the Act of 1961, the Principal Commissioner,Patna has no authority to grant sanction in the cases beyond threeyears. It is, thus, submitted that in absence of sanction by theappropriate authority, the assumption of jurisdiction under Section148 of the Act of 1961 would be wholly illegal. 11. Learned senior counsel submits that the PrincipalCommissioner of Income Tax who has has granted sanction in thepresent case has acted mechanically in a routine manner andsanction has been granted without application of judicious mind.For this reason as well, the order under Section 148A (d) of the Actof 1961 would stand vitiated. Submissions on behalf of the respondents 12. A counter affidavit has been filed on behalf of theDepartment. It is stated therein that information were receivedfrom insight portal uploaded by the ITO, Ward-3(1), Gaya whichsuggested that income chargeable to tax for the Assessment Year2020-21 has escaped assessment within the meaning of Section147 of the Act of 1961. A survey was conducted in the premises ofthe assessee. The documents found during the said survey revealsthe receipt of Rs.1,72,64,207/- for the financial year 2020-2021, Submissions on behalf of the respondents 12. A counter affidavit has been filed on behalf of theDepartment. It is stated therein that information were receivedfrom insight portal uploaded by the ITO, Ward-3(1), Gaya whichsuggested that income chargeable to tax for the Assessment Year2020-21 has escaped assessment within the meaning of Section147 of the Act of 1961. A survey was conducted in the premises ofthe assessee. The documents found during the said survey revealsthe receipt of Rs.1,72,64,207/- for the financial year 2020-2021, but the assessee has shown receipt amounting to Rs.23,37,200/-only in its corresponding ITR. The assessee was called upon toexplain the difference in the said receipt of Rs. 1,49,27,007/- alongwith corroborative evidence. The show cause notice under clause(b) of Section 148A was issued to the assessee. 13. It is stated that in response to the notice the assesseesubmitted its replies which were perused. It is submitted that thenotice dated 27.05.2024 mentions that as per survey record totalreceipt has been computed on the basis of receipt fromconsultancy, HTH (Admin), HTH-01 and HTH-(XRX). Thepetitioner took a plea that Dr. Vimlendu Vimal is the main forcebehind the Healing Touch Hospital. In reply to the question put incourse of survey, the petitioner categorically stated that the majorpart of the receipt found in course of survey belong to him and thatsome part of the OPD/consultancy are of the healing touchhospital. The entirety of the X ray receipts is of Dr. DipawaliVimal. 14. According to the respondents/department, thedescription of the gross receipts as stated in the notice dated27.05.2024 and the actual receipt as worked out from the similarmaterial impounded in course of survey vis-a-vis the disclosure inthe return of Dr. Vimlendu Vimal are as under:- 15. Learned senior Standing Counsel for the Department submits that scheme of Section 148A as amended by the FinanceAct, 2021 inter-alia provides for conduct of enquiry, grant ofopportunity of being heard in response to the show cause notice,consideration of the reply furnished and most important is adecision on the basis of the materials on record including the replyof the assessee to judge as to whether or not it is a fit case to issuea notice under Section 148 by passing an order with the priorapproval of the specified authority. 16. Learned senior counsel submits that from the kind ofstand taken by the assessee that “the major part’ of the receiptfound in course of survey belong to Dr. Vimlendu Vimal and that “some part” of the OPD/consultancy are of the Healing TouchHospital, the firm was required to be assessed properly to find outthe correct and true picture. It is the duty of the assessee tomaintain complete books of account but in this case there is nosuch document or books of account maintained by the assessee. Inspite of having been provided with sufficient time and opportunityto furnish evidences in support of its claim, the assessee could notsubmit any corroborative evidence in this regard. It is pointed outthat in the written submission dated 03.06.2024 filed by theassessee, an opportunity of hearing was requested and consideringits request, the assessee has been granted one more opportunity ofbeing heard in the matter in person by the office DIN vide letterdated 30.07.2024. In response to this letter, the assessee had filedits submission on 05.08.2024. The Department submits that theplea of the assessee that it had not sought any time to reply to thenotice is liable to be rejected. The Department has provided the listof the dates showing that how the petitioner requested forproviding specific information/ material and acceding the requestof the petitioner, the Department gave him opportunity to file hisreply and participate in the hearing. 17. It is submitted that the period of limitation forpurpose of clause (d) is to be considered from the date of 17. It is submitted that the period of limitation forpurpose of clause (d) is to be considered from the date of furnishing of the reply, in terms of clause (c) of Section 148A ofthe Act of 1961. The words ‘furnishing of reply’ has a widermeaning. In the present case, the assessee has furnished only partreply on 03.06.2024 as is evident from the fact that in that verysubmission, opportunity of being heard in person was prayed for.The hearing was provided by fixing a date on 06.08.2024. Thewritten submissions filed by the petitioner on 05.08.2024 is a partsubmission of his reply and notice issued by the Department on30.07.2024 is only in continuation of ongoing proceedings underSection 148A of the Act of 1961. 18. As regards the approval under Section 151 of the Actof 1961, it is submitted that approval has been accorded by thespecified authority Patna vide DIN No.ITBA/AST/S/126/2024-25/1069094736(1) dated 25.09.2024. Notice under Section 148 ofthe Act of 1961 has been issued vide DIN & Notice No.ITBA/AST/S/148_1/2024-25/1069097722(1) dated 25.09.2024. 19. Learned senior Standing Counsel for the Departmentsubmits that the show cause notice under clause (b) of Section148A of the Act of 1961 was issued timely to the assessee on29.03.2024. The case was opened after due process with approvalof specified authority. It is submitted that all processes were done through system which allowed the Department taking approvalfrom specified authority. 20. By filing a rejoinder to the counter affidavit of theDepartment, the petitioner has once again reiterated itssubmissions as regards the limitation and sanction. 21. In course of hearing of the writ application on02.07.2025, learned Senior Standing Counsel for the Departmentsubmitted that the second page (page no.67 of the writ application)which is said to be a part of the approval under Section 151 of theAct of 1961 seems to have been wrongly enclosed and it may notpertain to the present case. It was contended that column ‘17’ ofthe table shows the details of the information which suggests thatincome chargeable to tax has escaped assessment. It refers Orderunder Section 148A(d). It was contended that if the order underSection 148A(d) was already available on 17.03.2024, then therewould not have been any question to seek sanction for conductingenquiry under Section 148A(d) of the Act Income Tax Act on25.09.2024, therefore, the second page of the approval sheet underSection 151 of the Act was disputed. Later, in course of hearing ofthe matter on 10.07.2025, the learned Senior Standing Counsel hassubmitted on instruction that from Column ‘12’ of the approvalsheet under Section 151 it will appear that in answer to the same the word ‘No’ has been mentioned. It is submitted that sanctionhas been obtained at the stage of Section 148A(d) on 25.09.2024but in Column ‘20’ due to a typographical error it mentions“Section 148A(a)”. In fact the approval has been granted for orderunder Section 148A(d) which will be evident from the proposal ofthe DCIT and recommendations of the Joint C.I.T. The PrincipalCommissioner, Income Tax, Patna has granted sanction on25.09.2024. Notice under Section 148 has been issued aftersanction on the same day i.e. 25.09.2024. 22. Learned Senior Counsel has further submitted that inclause (b) of Section 148A for the purpose of providing an opportunityof being heard to the assessee, there would be no need of prior approvalof specified authority. The words “prior approval” of specified authorityin Clause (b) have been omitted by the Financial Act, 2022 w.e.f.01.04.2022. 22. Learned Senior Counsel has further submitted that inclause (b) of Section 148A for the purpose of providing an opportunityof being heard to the assessee, there would be no need of prior approvalof specified authority. The words “prior approval” of specified authorityin Clause (b) have been omitted by the Financial Act, 2022 w.e.f.01.04.2022. 23. It is further submitted that a close reading of clause (b) ofSection 148A would show that notice to show cause as to why a noticeunder Section 148 should not be issued may be based on theinformation which suggests of income chargeable to tax has escapedassessment and results of enquiry conducted, if any, as per clause (a).According to learned Senior Standing Counsel, the words “…..enquiryconducted, if any, as per clause (a)” would further suggest that anAssessing Officer may go for conducting any enquiry only when it isrequired. The words “conduct an enquiry, if any required, …. ” as occurring in clause (a) of Section 148A read with the submissions madehereinabove with respect clause (d) of Section 148A would only showthat conduct of an enquiry is not mandatory for purpose of issuance ofshow cause notice under clause (b). A notice may be issued under thisclause on the basis of information which suggests that incomechargeable has escaped assessment in the relevant year. Consideration 24. This Court has noted the submission of learned seniorcounsel for the petitioner who had questioned the notice under Section148 of the Act of 1961 issued on 25.09.2024, on the ground oflimitation as also on the ground that it has no sanction of the competentauthority. According to him, the sanction was required at both the stagesof Section 148A(a) and at the stage of Section 148A(d) of the Act of1961 but to this Court it appears that the words “… if required…”occurring under Section 148A(a) are the words of significance. It isonly when an enquiry is required then sanction is to be taken underSection 148A(a). 25. At this stage, this Court would take note of Section 147to 151 of the Act of 1961. Section 147 confers power upon theAssessing Officer to assess or reassess such income in respect of whichhe has reasons to believe that the same has escaped assessment for anyassessment year subject to the provisions and safeguards provided inthis Section. The Assessing Officer can reassess income for assessmentyear irrespective of which whether the original assessment was merely an intimation under Section 143(1) or the original assessment was afull-fledged scrutiny assessment under Section 143(3) of the Act of1961. The power to take proceedings under this provision is notconfined to the cases where the assessee had concealed his income, butit also extends to cases where the Assessing Officer has reasons tobelieve, on the basis of some tangible materials in his possession thatthe income has escaped assessment. 26. On a bare reading of Section 147 of the Act, it would beevident that the action envisaged under Section 147 is subject to theprovisions of Section 148 to 153. 27. Section 148 reads as under:- 61[Issue of notice where income has escaped assessment.62 an intimation under Section 143(1) or the original assessment was afull-fledged scrutiny assessment under Section 143(3) of the Act of1961. The power to take proceedings under this provision is notconfined to the cases where the assessee had concealed his income, butit also extends to cases where the Assessing Officer has reasons tobelieve, on the basis of some tangible materials in his possession thatthe income has escaped assessment. 26. On a bare reading of Section 147 of the Act, it would beevident that the action envisaged under Section 147 is subject to theprovisions of Section 148 to 153. 27. Section 148 reads as under:- 61[Issue of notice where income has escaped assessment.62 61. Substituted by the Finance Act, 2021, w.e.f. 1-4-2021. Prior to its substitution, section 148, as amended by the Direct TaxLaws (Amendment) Act, 1987, w.e.f. 1-4-1989, Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, Finance (No. 2)Act, 1996, w.r.e.f. 1-4-1989, Finance Act, 2006, w.r.e.f. 1-10-1991 and Finance Act, 2006, w.r.e.f. 1-10-2005, read as under:*148. ** Issue of notice where income has escaped assessment (1) Before making the assessment, reassessment orrecomputation under section 147, the Assessing Officer shall servet on the assessee a notice requiring him to furnish withinsuch period, as may be specified in the notice, a return of his income or the income of any other person in respect of which heis assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed formand verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of thisAct shall, so far as may bett, apply accordingly as if such return were a return required to be furnished under section 139:Provided that in a case- (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30thday of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified inthe proviso to sub-section (2) of section 143, as it stood immediately before the amendment of said sub-section by theFinance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, reassessment orrecomputation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to bea valid notice: Provided further that in a case-(a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30thday of September, 2005, in response to a notice served under this section, and (b) subsequently a notice has been served under clause (ii) of sub-section (2) of section 143 after the expiry of twelve monthsspecified in the proviso to clause (ii) of sub section (2) of section 143, but before the expiry of the time limit for making theassessment, reassessment or recomputation as specified in sub-section (2) of section 153, every such notice referred to in thisclause shall be deemed to be a valid notice. Explanation-For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second provisoshall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice servedunder this section. (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.”*For Notification No. SO 1178, dated 11-2-1982, log on to www.taxmann.com.**For relevant case laws, see Taxmann's Master Guide to Income-tax Act. For meaning of the term “serve”, see Taxmann’s Direct Taxes Manual, Vol. 3. For the meaning of the expression "so far as may be", see Taxmann's Direct Taxes Manual, Vol. 3. Explanation-For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second provisoshall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice servedunder this section. (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.”*For Notification No. SO 1178, dated 11-2-1982, log on to www.taxmann.com.**For relevant case laws, see Taxmann's Master Guide to Income-tax Act. For meaning of the term “serve”, see Taxmann’s Direct Taxes Manual, Vol. 3. For the meaning of the expression "so far as may be", see Taxmann's Direct Taxes Manual, Vol. 3. 62. See Order F.No. 225/40/2021/ITA II, dated 4-3-2021 (Instruction regarding selection of cases for issue of notice u/s 148)and Order F.No. 225/40/2021-ITA II, dated 15-3-2021 (Instruction regarding selection of Potential cases' for issue of noticeunder section 148 and rationalisation of workload in International Taxation Charges). 148. Before making the assessment, reassessment orrecomputation under section 147, and subject to theprovisions of section 148A, the Assessing Officer shallserve on the assessee a notice, along with a copy of theorder passed, if required, under clause (d) of section 148A,requiring him to furnish within [62a][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 regardby the assessee], a return of his income or the income ofany other person in respect of which he is assessable underthis Act during the previous year corresponding to therelevant assessment year, in the prescribed form andverified in the prescribed manner and setting forth suchother particulars as may be prescribed; and the provisionsof this Act shall, so far as may be, apply accordingly as ifsuch return were a return required to be furnished undersection 139: Provided that no notice under this section shall be issuedunless there is information with the Assessing Officerwhich suggests that the income chargeable to tax hasescaped assessment in the case of the assessee for therelevant assessment year and the Assessing Officer hasobtained prior approval of the specified authority to issuesuch notice: 63[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 anotice under this section:]where 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 anotice under this section:] 63a[Provided alsothat any return of income, required to befurnished by an assessee under this section and furnishedbeyond the period allowed shall not be deemed to be areturn under section 139.]furnished by an assessee under this section and furnishedbeyond the period allowed shall not be deemed to be areturn under section 139.] Explanation 1.—For the purposes of this section andsection 148A, the information with the Assessing Officerwhich suggests that the income chargeable to tax hasescaped assessment means,— (i) any information [64][***] in the case of the assessee forthe relevant assessment year in accordance with the riskmanagement strategy formulated by the Board from time totime;*or 62a. Substituted for "such period, as may be specified in such notice" by the Finance Act, 2023, w.e.f. 1-4-2023.63. Inserted by the Finance Act, 2022, w.e.f. 1-4-2022. 63a. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023. 64. Word "flagged" omitted by the Finance Act, 2022, w.e.f. 1-4-2022. 65[(ii) any audit objection to the effect that the assessmentin the case of the assessee for the relevant assessment yearhas not been made in accordance with the provisions ofthis Act; or (i) any information [64][***] in the case of the assessee forthe relevant assessment year in accordance with the riskmanagement strategy formulated by the Board from time totime;*or 62a. Substituted for "such period, as may be specified in such notice" by the Finance Act, 2023, w.e.f. 1-4-2023.63. Inserted by the Finance Act, 2022, w.e.f. 1-4-2022. 63a. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023. 64. Word "flagged" omitted by the Finance Act, 2022, w.e.f. 1-4-2022. 65[(ii) any audit objection to the effect that the assessmentin the case of the assessee for the relevant assessment yearhas not been made in accordance with the provisions ofthis Act; 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 AssessingOfficer under the scheme notified under section 135A; or(v) any information which requires action in consequenceof the 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 1[st] day of April, 2021,in the case of the assessee; or (ii) a survey is conducted under section 133A, other thanunder sub-section (2A) [66][***] of that section, on or afterthe 1[st] day of April, 2021, in the case of the assessee; or (iii) the Assessing Officer is satisfied, with the priorapproval of the Principal Commissioner or Commissioner,that any money, bullion, jewellery or other valuable articleor thing, seized or requisitioned under section 132 orsection 132A in case of any other person on or after the 1[st]day of April, 2021, belongs to the assessee; or (iv) the Assessing Officer is satisfied, with the priorapproval of Principal Commissioner or Commissioner, thatany books of account or documents, seized or requisitionedunder section 132 or section 132A in case of any otherperson on or after the 1[st] day of April, 2021, pertains orpertain to, or any information contained therein, relate to,the assessee, the Assessing Officer shall be deemed to have information whichsuggests that the income chargeable to tax has escaped assessmentin the case of the assessee [67][where] the search is initiated or booksof account, other documents or any assets are requisitioned orsurvey is conducted in the case of the assessee or money, bullion,jewellery or other valuable article or thing or books of account ordocuments are seized or requisitioned in case of any other person. Explanation 3.—For the purposes of this section, specifiedauthority means the specified authority referred to in section 151.]65. Clauses (ii) to (v) substituted for clause (ii), ibid. Prior to its substitution, clause (ii) read as under"(ii) any final objection raised by the Comptroller and Auditor General of India to the effect that the assessment in thecase of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act."66. Words or sub-section (5)" omitted, ibid. 67. Substituted for 'for the three assessment years immediately preceding the assessment year relevant to the previousyear in which", ibid., w.r.e.f. 1-4-2021. *"or" should be inserted. Explanation 3.—For the purposes of this section, specifiedauthority means the specified authority referred to in section 151.]65. Clauses (ii) to (v) substituted for clause (ii), ibid. Prior to its substitution, clause (ii) read as under"(ii) any final objection raised by the Comptroller and Auditor General of India to the effect that the assessment in thecase of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act."66. Words or sub-section (5)" omitted, ibid. 67. Substituted for 'for the three assessment years immediately preceding the assessment year relevant to the previousyear in which", ibid., w.r.e.f. 1-4-2021. *"or" should be inserted. 28. According to this provision, before making theassessment, reassessment or computation under Section 147, theAssessing Officer shall serve on the assessee a notice requiringhim to furnish within such period as may be specified in the noticereturn of his income during the previous year corresponding to therelevant assessment in the prescribed form. If such return is filed,provisions of Act of 1961 shall apply as if such return was a returnrequired to be furnished under Section 139. For the purpose of thepresent case, we need not go into the provisos to subsection (1) ofSection 148 of the Act of 1961. The second proviso to Section 148inserted vide Finance Act, 2022 with effect from 01.04.2022 shallapply. It is evident that what is required under this section is that anotice containing all or any of the requirements which may beincluded in a notice shall be served. 29. Section 148A has been inserted in the statute bookby the Finance Act, 2021 with effect from 01.04.2021. Section148A reads as under:- 68[Conducting inquiry, providing opportunity beforeissue of notice under section 148[.]148A. The Assessing Officer shall, before issuing anynotice under section 148,—issue of notice under section 148[.]148A. The Assessing Officer shall, before issuing anynotice under section 148,— (a) conduct any enquiry, if required, with the priorapproval of specified authority, with respect to theinformation which suggests that the income chargeable totax has escaped assessment; (b) provide an opportunity of being heard to the assessee, [69][***] 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);such 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 tofurnish a reply as per clause (b) expires: Provided that the provisions of this section shall not applyin a case where,— (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 tofurnish a 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 priorapproval of the Principal Commissioner or Commissionerthat any money, bullion, jewellery or other valuable articleor thing, seized in a search under section 132 orrequisitioned under section 132A, in the case of any otherperson on or after the 1st day of April, 2021, belongs to theassessee; or (c) the Assessing Officer is satisfied, with the priorapproval of the Principal Commissioner or Commissionerthat any books of account or documents, seized in a searchunder section 132 or requisitioned under section 132A, incase of any other person on or after the 1st day of April,2021, pertains or pertain to, or any information containedtherein, [70][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.] 30. A reading of Clause (a) of Section 148A makes it clear that the Assessing Officer shall before issuing any noticeunder Section 148 can conduct any inquiry, if required, with theprior approval of the specified authority with respect to which theinformation which suggests that the income chargeable to tax hasescaped assessment, thus an approval of the specified authority isrequired for purpose of conducting any inquiry with respect to theinformation. Clause (b) talks of providing an opportunity of beingheard to the assessee by serving upon him a notice to show causewithin such time as may be specified in the notice but the statuteclearly provides that such time could not be less than seven daysand shall not exceed thirty days from the date on which the noticeis issued. This time to show cause may be extended on the basis ofan application in this behalf. It is evident that this opportunity ofbeing heard is to be provided to show cause as to why a noticeunder Section 148A should not be issued. 31. It is further evident from Clause (c) of Section 148Athat the Assessing Officer has to consider the reply of the assesseepursuant to the show cause notice referred to in Clause (b). Thereafter, Clause (d) of Section 148A provides for a decision onthe basis of the material available on the record including reply ofthe assessee. The Assessing Officer has to decide as to whether ornot it is a fit case to issue a notice under Section 148 by passing anorder with the prior approval of a specified authority, within onemonth from the end of the month in which the reply referred to inClause (c) is received by him or where no such reply is furnishedwithin one month from the end of the month in which the time orextended time allowed to furnish a reply as per Clause (b) expires. 31. It is further evident from Clause (c) of Section 148Athat the Assessing Officer has to consider the reply of the assesseepursuant to the show cause notice referred to in Clause (b). Thereafter, Clause (d) of Section 148A provides for a decision onthe basis of the material available on the record including reply ofthe assessee. The Assessing Officer has to decide as to whether ornot it is a fit case to issue a notice under Section 148 by passing anorder with the prior approval of a specified authority, within onemonth from the end of the month in which the reply referred to inClause (c) is received by him or where no such reply is furnishedwithin one month from the end of the month in which the time orextended time allowed to furnish a reply as per Clause (b) expires. 32. In the present case, a notice dated 29.03.2024 wasissued under Section 148A (b) to the petitioner. It is the case of thepetitioner that the notice was not containing any information so hemade a request vide Annexure ‘P/3’ to the department to makeavailable the same in order to answer the allegations. On perusal ofthe records, we find that Annexure ‘P/2’ which is the notice underClause (b) of Section 148A Annexure was enclosed. The annexureattached to the notice says inter alia that “the details of theinformation/inquiry conducted on which reliance is being placed,along with supporting documents, are enclosed with thisnotice….” In response to this notice, the petitioner has stated in hisreply (Annexure ‘P/3’) that “the notice also mentions that thedetails of information/inquiry conducted on which reliance is being placed along with supporting documents are enclosed withthis notice but the assessee does not find any such enclosure alongwith notice.” The petitioner, therefore, requested the AssessingOfficer to supply the documents/information/inquiry reportsreferred to and relied upon in the annexure to the notice. 33. This Court further finds that vide Annexue ‘P/4’dated 08.04.2024, the Assessing Officer provided the details of theinformation on which reliance has been placed along with thesupporting documents. This Court has noticed that Annexure ‘P/3’is the same and one as that of Annexure ‘P/2’. Annexure to thenotice (P/3) once again mentions that the details ofinformation/inquiry conducted on which reliance is being placedalong with supporting documents, are enclosed with this notice.The petitioner once again wrote to the Assessing Officer that therelevant materials available on the record which has led to theissuance of notice have not been supplied. The words‘information/inquiry’ has been used interchangeably. 34. Thereafter, the Assessing Officer issued a letter dated27.05.2024 (Annexure ‘P/6’) by which the information in possession ofthe Assessing Officer has been made available to the petitioner whichwe reproduce hereunder for a ready reference:- “GOVERNMENT OF INDIAMINISTRY OF FINANCEINCOME TAX DEPARTMENT OFFICE OF THE ASSISTANTCOMMISSIONER OF INCOME TAXDCIT/ACIT CEN CIR 1, Patna To,HEALING TOUCH HOSPITALPARTNER DR VIMLENDU VIMAL SOUTHCHURCH ROAD,GANDHIMAIDANNEARGOVERNMENT BUS STANDGAYA 823001, Bihar India PAN:AssessmentDated:DIN & Letter No.AAIFH8721MYear:27/05/2024ITBA/COM/F/17/2022020-214-25/1065139800(1) Sir/Madam/ M/s 34. Thereafter, the Assessing Officer issued a letter dated27.05.2024 (Annexure ‘P/6’) by which the information in possession ofthe Assessing Officer has been made available to the petitioner whichwe reproduce hereunder for a ready reference:- “GOVERNMENT OF INDIAMINISTRY OF FINANCEINCOME TAX DEPARTMENT OFFICE OF THE ASSISTANTCOMMISSIONER OF INCOME TAXDCIT/ACIT CEN CIR 1, Patna To,HEALING TOUCH HOSPITALPARTNER DR VIMLENDU VIMAL SOUTHCHURCH ROAD,GANDHIMAIDANNEARGOVERNMENT BUS STANDGAYA 823001, Bihar India PAN:AssessmentDated:DIN & Letter No.AAIFH8721MYear:27/05/2024ITBA/COM/F/17/2022020-214-25/1065139800(1) Sir/Madam/ M/s Subject: Online service of Orders – LetterSub- Notice under clause(b) of section 148A of the Income-tax Act, 1961-reg.Ref. Your letter dated 22/04/2024.Kindly refer to the above.In connection with the above, documents/information is being provided to you asrequested.It is pertinent to mention here that in this case information has been received fromInsight portal uploaded by ITO, Ward 3(1), Gaya (Concerned verification detailsis attached here).Besides, as per the survey record, total rece