The assessee is a partnership firm providing professional services such as auditing, tax consulting, and advisory services. The issue involved is whether the income chargeable to tax has escaped assessment for a given assessment year. The revenue authorities issued a notice under section 148, alleging that certain foreign receipts had not been offered to tax. 

The assessee contended that none of the alleged amounts were related to the assessment year in question. Further that a portion of the amounts in question was also never received by the assessee. That some of these amounts were either received in subsequent years or by a different firm. The assessee also requested the relevant details to reconcile the payments, but these details were not provided. Aggrieved, the assessee filed the petition contending that the objections were not considered, and essential information was also not provided.

The Hon’ble High Court (‘HC’) found that the revenue authorities had failed to adequately consider the objections raised by the assessee, and thereby remanding the matter to the Assessing officer laid down the directions to provide the necessary information relied upon for issuing the notice under section 148, and to give the assessee an opportunity for a hearing to consider their objections in detail. That this exercise was to be completed within 12 weeks from the date of receipt of the court’s order. (AY. 2012-13)