2023 (7) TMI 1415 - HC - Income Tax

Validity of impugned order u/s 148A(d) - correct Assessment Year - Legality of initial notice u/s 148A(b) - in the notice relating to financial year 2015-16/2016-17 there is a reference of some transaction relating to financial years 2017-18 and 2018-19 - HELD THAT - As notice u/s 148A(b) of the Act and on the top of which it has been clearly described that the aforesaid notice has been issued relating to financial year 2015- 16/assessment year 2016-17. In the body of the annexure to the impugned notice u/s 148A(b) incidentally AO may have recorded some transaction relating to some other financial years, on the perusal of the aforesaid notice u/s 148A(b) of the Act along with annexure as a whole find that the notice under Section 148A(b) of the Act was issued particularly for assessment year 2016-17 only and response/objection was called for confining to only relating to assessment year 2016-17 and not only that the doubt or suspicion by the petitioner by confusing the issue as if the notice under Section 148A(b) was related to three assessment years which is not at all correct as appears from clarification of the assessing officer on perusal of which it appears that the petitioner was asked to give response/objection including the details of cash transaction only confining the financial year 2015-16 pertaining to assessment year 2016-17. Thus the petitioner has tried to make out a baseless and frivolous case not sustainable in law by creating an impression as if the impugned notice u/s 148A(b) and the order u/s 148A(d) and subsequent notice u/s 148 relates to three assessment years which is contrary to record on the face of it. WP dismissed.

Summary

Issues involved: Challenge to impugned order u/s 148A(d) of Income Tax Act, 1961 and subsequent notice u/s 148 based on legality of initial notice u/s 148A(b) dated 31st March, 2023.

Summary:
The petitioner challenged the impugned order u/s 148A(d) of the Income Tax Act, 1961, dated 7th May, 2023, related to financial year 2015-16/assessment year 2016-17 and subsequent notice u/s 148 of the Act, on the grounds that the initial notice u/s 148A(b) dated 31st March, 2023 was illegal due to a reference to transactions from other financial years. However, upon examination, the Court found that the initial notice was specifically issued for assessment year 2016-17 only, and the confusion regarding multiple assessment years was baseless. The assessing officer's clarification further confirmed that the petitioner was required to respond only regarding cash transactions for the financial year 2015-16 pertaining to assessment year 2016-17.

In light of the above discussion, the Court concluded that the petitioner's claim of the impugned notices relating to three assessment years was unfounded and unsustainable in law. Therefore, the writ petition challenging the legality of the notices was dismissed.