2023 (8) TMI 1407 - HC - Income Tax

Reopening of assessment u/s 147 - validity of order passed by u/s 148A(d) - as per information available in its office, the petitioner has entered into transactions during the year under consideration and the details of the same have been provided in tabulation form - HELD THAT - From the order passed by the assessing officer under Section 148A(d) of the Act, it is clear that the details about the said transaction are available on tax payer annual summary report of the petitioner. It is not the case of the petitioner that the details of such transactions are not available on the tax payer annual summary report of him. In such circumstances, the reasons assigned by the assessing officer in the order dated 05.04.2023 passed under Section 148A(d) of the Act cannot be brushed aside at the threshold. Period of limitation - So far as the contention of the petitioner that as per Clause (a) of sub-Section (1) of Section 149 of the Act, the time has expired for reassessment as the informative value happened to be less than Rs. 50,00,000/- has not impressed us because as per the information available with the assessing officer, the total escaped income for consideration is Rs. 1,84,45,194/- i.e. more than Rs. 50,00,000/-. Notice dated 05.04.2023 under Section 148 of the Act is in violation of the Notification of Ministry of Finance dated 29.03.2023 - as suffice it to say that prior to the issuance of the Notification of Ministry of Finance dated 29.03.2023, notice under Section 148A (b) had already been issued to the petitioner on 28.02.2023 and in such circumstances, the process of issuing notice under Section 148 of the Act had begun prior to the issuance of aforesaid notification of Ministry of Finance. Hence, it cannot be said that the notice under Section 148 of the Act has been issued in non-compliance of the same. Thus not a fit case to interfere in the impugned order as well as the notice issued by the assessing officer. Decided against assessee.

Summary

Issues Involved:
1. Challenge to the order under Section 148A(d) of the Income Tax Act, 1961.
2. Challenge to the notice under Section 148 of the Income Tax Act, 1961.
3. Allegation of reassessment proceedings being barred by limitation.
4. Allegation of reassessment based on surmises and conjectures.
5. Allegation of non-compliance with the notification dated 29.03.2023.

Summary:

1. Challenge to the order under Section 148A(d) of the Income Tax Act, 1961:
The petitioner filed a writ petition challenging the order dated 05.04.2023 passed by the assessing officer under Section 148A(d) of the Income Tax Act, 1961. The petitioner contended that the order was based on surmises and conjectures and should be set aside.

2. Challenge to the notice under Section 148 of the Income Tax Act, 1961:
The petitioner also challenged the notice dated 05.04.2023 issued under Section 148 of the Act. The petitioner argued that the reassessment proceedings were barred by limitation as the informative value was less than Rs. 50 lakh and three years had elapsed from the relevant assessment year.

3. Allegation of reassessment proceedings being barred by limitation:
The petitioner argued that the reassessment proceedings were barred by limitation under Clause(a) of sub-Section (1) of Section 149 of the Act because the informative value was less than Rs. 50 lakh. The court found that the total escaped income for consideration was Rs. 1,84,45,194, which exceeded the prescribed monetary limit, thereby dismissing the petitioner's contention.

4. Allegation of reassessment based on surmises and conjectures:
The petitioner contended that the order under Section 148A(d) was based on surmises and conjectures. However, the court observed that the assessing officer had considered the reply and documents submitted by the petitioner and concluded that the order was based on information and material available with the assessing officer, not on surmises and conjectures.

5. Allegation of non-compliance with the notification dated 29.03.2023:
The petitioner argued that the reassessment notice under Section 148 was issued in non-compliance with the notification dated 29.03.2023. The court noted that the notice under Section 148A(b) was issued on 28.02.2023, prior to the issuance of the notification, and thus, the process of issuing the notice under Section 148 had begun before the notification was issued.

Conclusion:
The court did not find it a fit case to interfere with the impugned order and the notice issued by the assessing officer. The writ petition was dismissed, and the petitioner was given the opportunity to represent before the assessing officer in response to the notice issued under Section 148 of the Act. The stay petition was also dismissed.