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2023 (6) TMI 1353 - HC - Income TaxValidity of reassessment order u/s 148A - allegation of bogus purchase made by assessee - HELD THAT - As appears from the impugned order that the opportunity of being heard was provided to the petitioner along with the copy of information and material relied upon and the assessee petitioner was asked to explain as to why the aforesaid transaction should not be treated as income chargeable to tax which is an escaped assessment. It also appears from the aforesaid impugned order that notice along with annexure was duly served upon the assessee petitioner through speed post to the registered address of the petitioner and the petitioner was asked to furnish reply to the same before 10th April, 2023 and pursuant to the same assessee has filed reply also and the assessing officer has considered the said reply. AO has come to a different conclusion but that does not mean that the assessing officer has not given the petitioner any opportunity of hearing or the assessing officer will have to agree with the contention of the petitioner. Findings against the petitioner based on material evidence cannot be re-appreciated and scrutinised by the Writ Court in exercise of its jurisdiction under Article 226 of the Constitution of India by acting as an assessing officer or an appellate authority. Furthermore petitioner has still ample scope after passing of the order u/s 148A(d) to make out any case if he has in his favour subsequent to the notice u/s 148 of the Act before passing of the final assessment order under Section 147 of the Act. Thus order u/s 148A(d) of the Act is neither final assessment order nor any demand arises out of the same and even if the order is passed under Section 147 of the Act that itself is also appealable under the statute.
Issues Involved:
The judgment involves a challenge to an order dated 13th April, 2023 under Section 148A(d) of the Income Tax Act, 1961 relating to assessment year 2019-20. Analysis: The impugned order alleged a bogus purchase made by the petitioner amounting to Rs. 2,08,87,819/- during the financial year 2019-20. The petitioner was provided with an opportunity to be heard, along with the information and material relied upon, to explain why the transaction should not be treated as income chargeable to tax. The notice was duly served upon the petitioner, who filed a reply before the specified date. The assessing officer considered the reply and reached a conclusion, which cannot be re-appreciated by the Writ Court under Article 226 of the Constitution of India. The petitioner still has ample scope to present any case in their favor before the final assessment order under Section 147 of the Act. Legal Ruling: The order under Section 148A(d) is not a final assessment order, and any demand arising from it is appealable under the statute. Considering the facts and circumstances of the case, and the nature of the allegation, the Court found no illegality in the impugned order. Therefore, the writ petition was dismissed.
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