JUDGMENT :

KAMAL KHATA, J.

1. By this petition, the petitioner challenges the notice dated 31st March 2021, issued under section 148 of the Income Tax Act, 1961 (‘the Act’) by respondent No.1 seeking to reopen the assessment, on the basis of ‘his reason to believe’ that income chargeable to tax for the assessment year 2016-17 had escaped assessment within the meaning of section 147 of the Act; and the order dated 11th March, 2022 disposing of the objections raised by the Petitioner inter alia on the ground that the respondent failed to consider the contentions raised did not conduct any further enquiry.

FACTS :

2. The Petitioner is engaged in the business of trading in electronic appliances and has filed its returns on a regular basis and even for A.Y.2013-14. The respondent No. 1 by its order under section 143(3) of the Act dated 14th March 2016 accepted the returned income of the Petitioner for A.Y. 2013-14 after considering the submissions filed by the Petitioner. It filed its return of income under section 139(1) of the Act on 13.10.2016 for A.Y. 2016-17 declaring a total income of Rs. 2,85,63,750/-. The Petitioner’s books of accounts were audited, and the auditor uploaded the audit report in the Form No. 3CD. On 31st March, 2021 notice under section 148 of the Act was issued to the Petitioner for the A.Y. 2016-17 with the prior approval of Respondent No. 2. Pursuant thereto, on 23rd April, 2021, the Petitioner filed its return of income. By letter dated 4th May, 2021, the Petitioner issued a letter seeking reasons recorded. On 23rd June, 2021 however, the respondent No. 1 issued a notice under section 143(2) of the Act and also supplied reasons recorded for reopening the assessment, which are summarized in the petition as follows :

“(a) Information was shared on INSIGHTS PORTAL under the “verification module” under the head “High Risk Transaction cases”.

(b) The Description of such information says ‘Account Balance or value at the end of the reporting Period” and the amount mentioned is Rs. 103,79,33,586/-.

(c) In para 5 the finding of the officer is recorded which says that “there is credible information received on the Insights portal that high risk transactions have taken place in the case of the assessee which needs to be verified.”

3. In response thereto, on 6th July, 2021, the Petitioner filed detailed objections. Further objections were filed by a letter dated 17th July, 2021. Since there was no progress on the disposal of the objections, the Petitioner uploaded online response on 18th February, 2022, whereby the Petitioner requested disposal of the objections raised by the letters dated 6th July, 2021 and 17th July, 2021. Thereafter, on 28th February, 2022, second reminder letter was filed. On 11th March, 2022 impugned order was passed disposing the Petitioner’s objections to the proposed reassessment. Immediately, thereafter, a notice under section 142(1) of the Act was issued to the Petitioner calling upon them to provide certain details. In response to the notice, the Petitioner filed letter on 15th March, 2022 raising grievance that the notice only gave one working days’ time to file a reply. The Petitioner apprehending arbitrary and huge demands, filed this petition.

4. Mr. Dharan Gandhi the learned Counsel for the Petitioner submitted that the A.O. has failed to establish that the jurisdictional conditions are satisfied to initiate reassessment proceedings. He submitted that the reassessment is based solely on the information received under the head High Risk Transaction cases under the verification module on the “INSIGHTS PORTAL”. He submits that the description on the portal is “Account Balance or value at the end of the reporting Period”, against which an amount of Rs. 103,79,33,586/- is mentioned. He submits that there is nothing in the reasons or in the order disposing objections in this regard. Accordingly, on such vague and ambiguous information, assessment cannot be reopened. He submits that there is no live