2023 (8) TMI 1283 - HC - Income Tax

Reopening of assessment u/s 147 - reason to believe - petitioner has stated that the total deposit in cash that was made by the petitioner was only for INR 21,65,000 as against INR 65,02,546 between 01-04-2015 and 31-03- 2016 - HELD THAT - As considered the arguments advanced by petitioner and the learned Senior Standing Counsel for the respondent, there is no case made out for interfering with the impugned order. The entries in the bank account that has been filed along with the reply on 16.03.2023 indicates that the petitioner has not only received Rs. 31,80,200/- in cheque but also additionally a sum of Rs. 21,65,000/- in the account. Thus, the proceedings that has been initiated so far, which has been culminated in the impugned Assessment Order and Notice u/s 148 cannot be interfered with. WP dismissed.

Summary

Issues involved:
The judgment deals with the impugned Assessment Orders passed by the respondent under Section 148A(d) and 148A(b) of the Income Tax Act, 1961.

Issue 1: Assessment Order under Section 148A(d)
The respondent passed an Assessment Order under Section 148A(d) of the Income Tax Act, 1961, concluding that the petitioner failed to provide proper evidence to establish that a transaction did not amount to escapement of income chargeable to tax. The order stated that income chargeable to tax had escaped assessment for the Assessment Year 2016-17 due to transactions exceeding Rs. 50 Lakhs. The order was issued with the prior approval of the Principal Chief Commissioner of Income Tax, Chennai.

Issue 2: Notice under Section 148A(b)
The petitioner was issued a Notice under Section 148A(b) of the Income Tax Act, 1961, as the petitioner had filed a manual return belatedly. The notice stated that income chargeable to tax had escaped for the Assessment Year 2016-17 and required the petitioner to show cause as to why a notice under Section 148 should not be issued. The petitioner responded, disputing the total cash deposit amount mentioned in the notice.

Judgment:
The court considered the arguments presented by both parties and found no grounds to interfere with the impugned Assessment Order and Notice under Section 148 of the Income Tax Act. The bank account entries submitted by the petitioner indicated discrepancies in the cash deposits, supporting the respondent's position. Consequently, the court dismissed the Writ Petition, stating that the proceedings initiated so far were valid and should not be interfered with. No costs were awarded, and the connected Writ Miscellaneous Petitions were closed.