M/S. SYLVESA INFOTECH PRIVATE LIMITED Vs. ASSESSING OFFICER, ASSESSMENT UNIT OF NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI

JUDGEMENT

(1.) Mr. Ray, learned senior advocate appears on behalf of petitioners, of whom petitioner no.1 is the assessee. He submits, initially two notices dtd. 31/3/2021 and 8/4/2021 were issued to the assessee in relation to assessment year 2015-16. The assessee had separately challenged them by WP(C) nos.38822 and 38823, both of 2021. The writ petitions were dealt with by coordinate Bench of common judgment dtd. 1/11/2022. Paragraphs 1 and 2 in the judgment are reproduced below.

(2.) Mr. Ray submits, both the notices were set aside and quashed by said judgment. It is after the quashing that revenue issued notice dtd. 3/5/2023 for assessment year 2015-16. Said notice is not one under Sec. 148-A in Income Tax Act, 1961. Though, it has been termed as a show cause notice but, it clearly alleges variation and says, in case no response is received the assessment shall be finalized. Such is not the consequence of notice under Sec. 148-A in Income Tax Act, 1961. Consequence of a notice under Sec. 148-A is for reply thereto and an order to be passed under clause (d) in Sec. 148-A. The order then can be basis for issuance of notice under Sec. 148. This procedure has not been followed. Hence, impugned show cause notice dtd. 3/5/2023, assessment order and notice of demand, both dtd. 12/5/2023 be quashed.

(3.) Mr. Satapathy, learned advocate, Senior Standing Counsel appears on behalf of revenue and relies on paragraphs 25.1 and 25.2 from judgment of the Supreme Court in Union of India v. Ashish Agarwal, reported in (2023) 1 SCC 617. The paragraphs are reproduced below.