The High Court of Calcutta set aside the order passed u/s. 148A(d) of the Income-tax Act, 1961 on the ground that the source of information based on which the reopening proceedings were initiated have not been disclosed to the assessee. This has disabled the assessee from putting forth his submissions in a proper and effective manner in response to notice issued u/s. 148A(b).

The High Court held that the opportunity afforded at the first instance should be an effective opportunity because the power of re-opening of an assessment is a power which is to be sparingly used for adequate reasons.

Accordingly, the ratio decidendi laid down in this judgment is that if the Assessing Officer has not furnished the relevant documents based on which the show-cause notice u/s. 148A(b) of the Income-tax Act, 1961 has been issued then there has been gross violation of principles of natural justice.