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2023 (4) TMI 1270 - HC - Income TaxReopening of assessment - Time limit for notice u/s 149 - whether an order could be issued u/s.148A(d) and, thereafter a notice u/s. 148 of the amended Income Tax Act when quantum of income which escaped assessment is alleged to be less than 50 lacs? - HELD THAT - Prima facie it appears that even if the CBDT letter provides otherwise, the same cannot supplant the statutory provision u/s. 149 of the Income Tax Act and therefore, prima facie the petitioner appears to have made out a case for admission and interim relief. Accordingly, as an interim relief, it is directed that the notice u/s 148 of the amended Income Tax Act and the order u/s 148A(d) of the amended Income Tax Act shall remain stayed, till the next date of hearing.
Issues involved:
Challenge to notice u/s 148 and order u/s 148A(d) of the Income Tax Act, 1961. Regarding notice u/s 148: The petitioner's counsel cited a Supreme Court decision allowing the assessee to raise objections u/S. 149 of the Income Tax Act. The petitioner argued that the alleged escaped income of Rs.14,30,000 is less than the Rs.50 lakhs threshold u/S. 149(1)(b). It was highlighted that a similar issue was stayed by a co-ordinate Bench at Indore. The Revenue's counsel failed to justify issuing an order u/S.148A(d) followed by a notice u/S. 148 when the escaped income is below 50 lakhs. Despite reliance on a CBDT circular, the Court found that statutory provisions u/S. 149 cannot be overridden by administrative instructions. Consequently, the petitioner was granted interim relief, staying the notice u/s 148 and order u/s 148A(d) until the next hearing. Regarding order u/s 148A(d): The Court noted the petitioner's argument that the escaped income is significantly below the threshold specified in u/S. 149(1)(b). The Revenue's reliance on a CBDT circular was deemed insufficient to counter the statutory provision. Consequently, the Court granted interim relief, staying the order u/s 148A(d) until the next hearing, allowing time for the respondent to file a reply.
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