Gkn Driveshafts (India) Ltd vs Income Tax Officer And Ors on 25 November, 2002
18. Section 148A goes far beyond the mechanism provided by
the Supreme Court in GKN Driveshafts (India) Ltd. (supra) 1.
Under the said mechanism the assessee would have access to the
reasons recorded by the Assessing Officer after receipt of notice
under Section 148. His right was limited to raising objections
which would be disposed of by the Assessing Officer. Under the
new scheme of Section 148A, the Assessing Officer has to first
provide an opportunity to the assessee why notice under Section
1(2003) 259 ITR 19 (SC)
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148 should not be issued on the basis of information which
suggests that income chargeable to tax has escaped assessment.
Though clause (b) of Section 148A does not so specify, since the
notice calls upon the assessee why assessment should not be
reopened on the basis of information which suggests that income
chargeable to tax has escaped assessment, the requirement of
furnishing such information to the assessee is inbuilt in the said
provision. The assessee thus has an opportunity to oppose even
issuance of notice under Section 148 and he could legitimately
expect that the Assessing Officer provides him the information
which according to him suggests that income chargeable to tax
has escaped assessment. The Assessing Officer has a duty to
decide whether it is a fit case for issuing notice under Section 148
of the Act. Such decision has to be taken on the basis of material
available on record and the reply of the assessee, if any filed. The
decision has to be taken within the time prescribed.