The Assessing Officer is required to consider the objections raised by the assessee in accordance with the provisions of Section 148A of the Income Tax Act, 1961, failing which the order passed under Section 148A and the notice issued under Section 148 are invalid.

JUDGMENT :

J.B. PARDIWALA, J.

1. By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“(a) quash and set aside the impugned notices and order at Annexure- A1, A2 and A3 to this petition.

(b) pending the admission, hearing and final disposal of this petition, to stay implementation and operation of the order and notice at Annexure-A2 and A3 to this petition and stay further proceedings for assessment for A.Y. 2018-19.

(c) any other and further relief deemed just and proper be granted in the interest of justice.

(d) to provide for the cost of this petition.”

2. On 26th April 2022, this Court passed the following order:

“1. We have heard Mr. Bandish Soparkar, the learned counsel appearing for the writ applicant for quite some time. We seek assistance of Mr. M.R. Bhatt, the learned Senior Counsel, who would be appearing for the Revenue.

2. Prima-facie, the case of the department appears to be that for the Assessment Year 2018-19, the writ applicant had not disclosed about the transactions in his return of income connected with the Social Cooperative Bank Ltd. In the reasons assigned, we find reference of three bank accounts maintained with the Social Co-operative Bank Ltd. and three bank accounts maintained with the Union Bank of India. So far as the Union Bank of India is concerned, there are hardly any transactions but, there are huge transactions so for as the Social Co-operative Bank Ltd. is concerned. Out of the three bank accounts, according to the writ applicant, one of the bank accounts maintained with the Social Cooperative Bank Ltd. is that of the HUF and the HUF is being assessed independently. Even if one of the bank accounts is that of the HUF still the question is how do we determine whether in the original return all the transactions connected with the Social Co-operative Bank Ltd. were disclosed in the return. The argument is that in the return, the assessee need not disclose anything about his bank or the bank details. In the return, he has to show the transactions, the profit and loss account etc.

3. We would like to know from both, the assessee as well as the Revenue, whether all the transactions for the relevant Assessment Year 2018-19 were with respect to only this particular bank or there are any other accounts also of the writ applicant with other banks.

4. We request Mr. Bhatt, the learned Senior Counsel, to seek appropriate instructions in this matter and revert to us on 02.05.2022.

5. Post this matter on 02.05.2022.

6. One set of the entire paper book shall be furnished to Mr. Bhatt at the earliest.

7. On the returnable date, notify this matter on top of the Board.”

3. We have heard Mr. S.N. Soparkar, the learned Senior Counsel appearing for the writ applicant and Mr. M. R. Bhatt, the learned Senior Counsel assisted by Mr. Karan Sanghani, the learned counsel appearing for the Revenue.

4. As noted in our order dated 26th April 2022, the reason why the Assessing Officer wants to reopen the assessment for the relevant year 2018-19 is that the writ applicant-assessee had not shown the transactions with respect to the Social Cooperative Bank Limited. This is evident from Para-3 of the notice issued under clause (b) of Section 148A of the Income Tax Act, 1961 (for short “the Act 1961”) wherein the following has been stated: