2022 (12) TMI 801 - HC - Income Tax

Reopening of assessment u/s 147 - order u/s 148A(d) - petitioner has received the gift from his father - As urged in the order u/s 148A(d) the officer accepts the limitation that the three years had elapsed from the end of relevant assessment year and for necessary sanction he refers the matter to the Commissioner of Income-tax instead of Chief Commissioner of Income-tax - HELD THAT - Issue Notice, returnable on 13.12.2022. By way of interim relief, it is directed that the process of assessment shall continue with the cooperation of the petitioner, however, the final assessment order shall not be passed before the returnable date. Over and above the regular mode of service, direct service through e-mode (on official Email address) is also permitted.

Summary

Issues Involved:
Challenge to notice under Section 148A(d) of the Income Tax Act for Assessment Year 2018-2019.

Analysis:
The petitioner challenged the notice issued under Section 148A(d) of the Income Tax Act, 1961, dated 27.4.2022, proposing to issue a notice under Section 148 for the Assessment Year 2018-2019. The petitioner sought to quash the impugned notices and order, stay the implementation of the notice, and stay further assessment proceedings for the mentioned year. The petitioner's advocate argued that the source of the gift being assessed in the hands of the donor made simultaneous assessment in the hands of the donee unacceptable. Relying on a Supreme Court decision, the advocate contended that the department, under the guise of reopening the assessment, needed to review the inbuilt test for the Assessing Officer's use of powers. Additionally, questions were raised regarding the Assessing Officer's entitlement to reopen an issue once finally decided in a scrutiny assessment, especially when information is received through a portal. The advocate highlighted that the officer, in the order under Section 148A(d), acknowledged the elapsed time from the relevant assessment year and referred the matter for necessary sanction to the Commissioner of Income-tax instead of the Chief Commissioner of Income-tax.

The Court allowed the draft amendment and directed it to be carried out immediately. The Court issued notice returnable on 13.12.2022 and directed that the assessment process could continue with the petitioner's cooperation, but the final assessment order should not be passed before the returnable date. In addition to regular service, direct service through e-mode on the official Email address was also permitted.