Honourable single Judge set aside the order . On appeal the order was quashed .  Assessee had submitted the explanation to the notice along with documents supporting their claim but the AO had given up the said allegation which formed the basis of the notice and proceeded on fresh ground for alleging that the transaction with some other company was an accommodation entry; on that score the order dt. 7th April,2022 is liable to be set aside in its entirety without giving any opportunity to reopen the matter on a different issue No further action can be taken by the Department against the assessee on the subject issue.    Referred  , CBDT Circular dated  Ist August  2022  which has referred earlier circular dated 1 st August  , 2022  para 3 therein, it has been stated as follows :

“(3) . Further, it is re-emphasized that-

• Before initiating proceedings under section 148/ 147 of the Act , any information available on data -base /portal of the Income -tax Department shall be verified before drawing any adverse inference again the tax payers . It is not out of place to mention here that the information made available / data uploaded by the reporting entities may not be fully accurate due to inter alia , error of human nature , etc . Therefore , due verification may be carried out and opportunity of being heard be given to the tax payer before initiating proceedings under section 148 / 147 of the Act .
• The supervisory authorities are hereby advised to keep an effective supervision so as to ensure that all extant instructions / Guidelines / Circulars / SOPs are duly followed by the Assessing Officers in their charge . “

On the facts the order of single judge remanding the matter to the assessing Officer is also set aside . Consequently , no further action be taken by the department against the appellant / assessee on the subject issue .