Shashank Garg v.ITO (2023)455 ITR 347 (P&H)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Allegation in respect of inadmissible expense claimed not stated in initial show-cause notice-Show-Cause notice and subsequent order is invalid.[S. 147,148 148A(b), 148A(d), Art. 226]

Allowing the petition the Court held that the order under section 148A(d) was silent on how the reply given by the assessee to the show-notice under section 148A(b) was considered. Though the verification report had been uploaded on the portal of the Deputy Director it was not a part of the initial show-cause notice and the amount in question received from the party had not been shown in the initial show-cause notice. The assessee had no occasion to file reply on that issue. The notice and order is quashed and set aside. Referred, Catchy Prop-Build Pvt. Ltd. v. ACIT (2022) 448 ITR 671 (Delhi)(HC), Excel Commodity and Derivative Pvt Ltd  (2023)  445 ITR 341 (Cal)(HC)