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TMI Blog2022 (9) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings for reassessment may be initiated. In fact, in the celebrated case of Pooran Mal Vs the Director of Inspection (Investigation), New Delhi and Ors . [ 1973 (12) TMI 2 - SUPREME COURT] the Hon'ble Supreme Court has affirmed the position that material obtained in the course of a search or a survey that might itself not confirm to the parameters of a legally conducted search, would still qualify as information that may be used by an Authority in the course of assessment. No doubt, the provisions of Section 148A does not contain such an expanded description of the sources that remain limited to those mentioned therein, including Foreign Tax and Tax Research (FT TR) references. In addition, the Department has set up a specific post designated as Director of Income Tax (Investigation and Criminal Intelligence), with a team of officers, to probe and locate instances of evasion of tax/avoidance of tax for appropriate action. We find no merit in the submission of the petitioner to the effect that the information available with the officer is vague, non-specific or does not relate to the Risk Management Strategy of the Department. The term 'Risk Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unique to the present petitioner and a slew of Writ Petitions had come to be filed all over the country wherein similar orders had been passed by the Courts. The Revenue Department had challenged the aforesaid orders by way of Special Leave Petitions before the Hon ble Supreme Court which, vide judgment in the case of Union of India Vs Ashish Agarwal [2022 (444) ITR 1], took note of the grievances of the revenue on this score and allowed the petitions. 5.The submission of the revenue was that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (in short 'TOLA') extended limitation till 30.06.2021 and thus, the notices for the period 01.04.2021 to 30.06.2021 issued under the erstwhile scheme of re-assessment were valid. The Supreme Court took note of the position that approximately 90,000 notices for re-assessment had been issued by the Income tax Department during the period from 01.04.2021 to 30.06.2021, and several hundred writ petitions filed by assessees assailing the re-assessments. 6. What primarily weighed with the Court was that if the arguments of the petitioner to the effect that such notices were invalid were to be acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available.' 8.It is consequent on the aforesaid directions that the Income Tax Department has pursued the matter in the present petitioner's case. The judgment of the Supreme Court is dated 04.05.2022 and on 07.07.2022, a notice came to be issued to the petitioner in terms of Section 148A(b) of the Act. On 30.07.2022, an order came to be passed under Section 148A(D) of the Act. The reasons for re-assessment were communicated on 26.05.2022 and read as follows: 'Please refer to Notice under section 148 of the Income tax Act, 1961 issued vide DIN ITBA/AST/S/148/2021- 22/1032141314(1) dated 01/04/2021 for Assessment Year 2016-17. Hon'ble Supreme Court vide its judgment dated 04.05.2022(2022 SCC Online SC543)(Union of India vs Ashish Agarwal) has held that Notices of reassessment u/s.148 issued after 01.04.2021 during the extended period shall be deemed to be Show Cause Notices issued under clause (b) of 148A of the Act. 2.Hence, in compliance to the Board's Instruction No.1/2022 of F.No.279 /Misc./M-51/2022-ITJ dated 11th May 2022 on impleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mulated by the Department or Audit Objection, if any, in its case. In the present case, the reasons do not disclose receipt of information on account of either the Risk Management Strategy or Audit Objection. (ii) The second objection raised is that Section 149(1)(b) requires the officer, in the case of a re-assessment beyond three years from the end of the relevant assessment year, to have in his possession, books of accounts, other documents or evidences that reveal that the income that has allegedly escaped tax, is represented in the form of asset, expenditure, in respect of a transaction or in relation to an event or occasion or entry or entries in the books of accounts, that indicates that there has been escapement which amounts to or is likely to amount to, a sum of Rs.50,00,000/- or more. According to the petitioner, the aforesaid condition has not been satisfied in this case. 10.The objections raised have come to be rejected vide impugned order dated 13.07.2022 consequent upon which a notice under Section 148 of the Act of even date, has been issued. 11. Having heard learned counsel and perused the documents carefully, I am of the view that the challenge to jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order; or 2.has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or 3.has been confirmed at the 1st stage of appeal in favour of revenue or subsequently; even if further appeal of assessee is pending, against such order. 5.As per the provisions of section 149(1)(b) of the Act, in specific cases where the Assessing Officer has in his possession evidence which reveal that the income escaping assessment, represented in the form of asset, amounts to or is likely to amount to fifty lakh rupees or more, notice can be issued beyond the period of three years but not beyond the period of ten years from the end of the relevant assessment year. Further, the notice under section 148 of the Act cannot be issued at any time in a case for the relevant assessment year beginning on or before 1st day of August, 2021, if such notice could not have been issued at that time on account of being beyond the time limit prescribed under the provisions of clause (b), as they stood immediately before the proposed amendment. As per explanation provided to section 149 of the Act, the term asset shall include immovable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigation and Criminal Intelligence) and for the purposes of Section 148A, this would suffice. 20. Coming to the second argument, a perusal of the reasons indicates that, prima facie, the condition set out under Section 149(1)(b) is satisfied insofar as the income chargeable to tax that is represented in the form of the movable property transferred by the petitioner, is a sum of Rs.1,50,25,585/-, far in excess of the required amount of Rs.50,00,000/-. 21. The last argument relates to the grant of sanction in terms of Section 151 of the Act and the petitioner submits that there has been no sanction accorded as statutorily required. However, upon a perusal of the impugned notice under Section 148 of the Act dated 30.07.2022, I find that sanction has been duly obtained from the Principal Commissioner of Income Tax/R2 and thus, this argument fails. No infirmity is pointed out in the sanction as accorded. 22. No other ground is raised or argued before me, and in light of the discussion as above, the challenge to the re-assessment proceedings is rejected. The re-assessment will now proceed on the merits of the matter, in accordance with law. Dismissed. No costs. Consequently, con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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