9911796707
TMI Blog2024 (1) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner received a notice dated 28.02.2023 under Section 148A(b) of the Income Tax Act calling upon the petitioner to show cause as to why a notice under Section 148 should not be issued in respect of the transactions specified in the annexure to the notice. A reply dated 03.03.2023 was issued by the petitioner in respect thereof. Thereafter, the impugned order was issued concluding that it is a fit case for issuance of notice under Section 148 of the Income Tax Act. This writ petition was filed in the said facts and circumstances. 3. Learned counsel for the petitioner assails the impugned order on three grounds. The first ground is that the notice was issued under Section 148A(d) entirely on the basis of information obtained from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable under Section 56(2)(vii)(b) of the Income Tax Act as income from other sources. Learned counsel submits that the show cause notice did not call for an explanation with regard to the difference between the sale consideration and guideline value and, therefore, the petitioner was denied an opportunity to respond. By placing reliance on the judgment of the Calcutta High Court in Excel Commodity and Derivative (P.) Ltd. v. Union of India, [2023] 150 Taxmann.com 94 (Calcutta), particularly paragraph 8 thereof, learned counsel submitted that Explanation 1 to Section 148 should not be lightly resorted to for purposes of re-opening an assessment. 5. In response to these submissions, Dr.Ramasamy, learned senior standing counsel for the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the rival contentions is whether a case is made out to exercise discretionary jurisdiction. The show cause notice dated 28.02.2023 was issued on the basis of information gathered from the Insight Portal. By the show cause notice, the petitioner was called upon to provide an explanation with regard to the details set out in the annexure thereto and show cause as to why a notice under Section 148 should not be issued. The annexure contains a table with three entries. The first two entries relate to the purchase of an immovable property. The last entry relates to a TDS statement for a sum of Rs. 1,04,563/-. 8. In response to this show cause notice, the petitioner issued a reply on 03.03.2023. In the said reply, the petitioner admits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- (1,42,75,000/- - 1,25,00,000/- = 17,75,000/-). The difference of Rs. 17,75,000/- is assessable u/s. 56(2)(vii)(b) of IT Act. It is also seen that there is no documentary evidence for the value of Rs. 31,25,000 and Rs. 8,75,000/- mentioned as the gift deed from Smt.A.Premaleela, as claimed by the assessee also there is no evidence for the value of Rs. 2,69,000 mentioned as savings. 4. From the details/reply furnished by the assessee it is seen that the assessee has not disputed the evidence in the form of information provided by the INSIGHT PORTAL in accordance with the Risk Management Strategy. The document/evidence in possession reveal that the income chargeable to tax is represented in the form of expenditure spent towards investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts received from the petitioner's mother, although necessary information was provided by the petitioner, there is no discussion or evidence of consideration of the income tax returns of the petitioner's mother so as to test the veracity of the petitioner's explanation. Moreover, the explanation provided by the petitioner with regard to the receipt of a home loan of Rs. 93,75,000/- from Sundaram BNP Paribas, which formed the alleged principal source for the purchase, has not been dealt with in the impugned order. Unless an assessee's response to the show cause notice is duly considered before a decision is taken to issue notice under Section 148, the statutory mandate of a prior show cause notice would be reduced to an empty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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