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2023 (5) TMI 474 - HC - Income Tax


Issues involved: Challenge to order under Section 148A(d) and consequential notice under Section 148 of the Income Tax Act, 1961; Challenge to notice issued under Section 148A(b); Challenge to order passed by the Assessing Officer (AO) regarding objections filed by the petitioner.

Issue 1: Order under Section 148A(d) and consequential notice under Section 148:
The petitioner challenged the order dated 31.07.2022 passed under Section 148A(d) and the consequential notice issued on the same date under Section 148 of the Income Tax Act, 1961. The petitioner contended that the order and notice could not be sustained due to a non-application of mind by the AO. The AO's attempt to include the repayment of loans in the total amount received by the petitioner was deemed inappropriate by the court. The court set aside the orders and notices, granting liberty to the AO to conduct a fresh assessment after providing a personal hearing to the petitioner and ensuring all relevant materials are furnished.

Issue 2: Challenge to notice under Section 148A(b):
The petitioner also challenged the notice dated 27.05.2022 issued under Section 148A(b) of the Act. In response to this notice, the petitioner claimed to have received unsecured loans from related and unrelated parties during the relevant financial year. The petitioner admitted to receiving a lesser amount than what was alleged in the notice, specifying the sources of these loans from both related and unrelated parties. The court noted discrepancies in the AO's assessment and directed a fresh assessment to be conducted.

Issue 3: Challenge to order passed by the Assessing Officer (AO):
Additionally, the petitioner contested the order dated 16.03.2023 passed by the AO, where objections raised by the petitioner were disposed of. The AO's decision to consider the repayment of loans in the total transaction amount was found to be erroneous. The court emphasized the need for a proper assessment without adding the repayment amounts to the loan received, setting aside the order and directing a fresh assessment with a personal hearing for the petitioner.

 

 

 

 

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