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2023 (5) TMI 1294 - CALCUTTA HIGH COURTValidity of reassessment proceedings - legality of the impugned order u/s 148A(d) - reopening merely on the basis of remarks “potential borrower/lender” - as argued AO has relied on some investigation report from the office of the DGIT (Investigation) where some remarks was made as “potential borrower/lender” and it is the case of the petitioner that impugned proceeding on the basis of the alleged remarks of “potential borrower/lender” without naming or disclosing anything in detail against the petitioner, is legally not sustainable - HELD THAT:- Such allegation of petitioner that the assessing officer has proceeded merely on the basis of remarks “potential borrower/lender” is not correct since in the later part of the order assessing officer has clarified that on verification of the document the assessing officer has found credible evidence of actual borrowings and not potential in nature. It has also been recorded by AO in the impugned assessment order that it is evident that the assessee has availed cash loan through finance broker from different lenders and it has also been recorded that there is a huge unexplained expenditure within the meaning of Section 69C of the Act and that the cash loan and repayment in cash comes within the crux of provision 269SS and 269T and other relevant provisions of penalty under the aforesaid Act. As find on perusal of the aforesaid impugned order u/s 148A(d) of the Act that the same is based on huge materials and evidence regarding the alleged transaction and that Court in exercise of Constitutional Writ Jurisdiction cannot act as an assessing officer and scrutinize those facts and evidence and substitute the same with its own. Thus aforesaid impugned order is neither a nonspeaking order nor any violation of principles of natural justice nor any procedural irregularity has been committed during the proceeding nor the impugned order has been passed by an officer having inherent lack of jurisdiction which is based on facts and findings and materials evidence. The aforesaid factors should not be ignored. In addition the order under Section 148A(d) of the Act is neither a final assessment order nor any demand arises out of such order and petitioner still will have ample opportunity and scope to make out a case in its favour in proceeding subsequent to the order passed under Section 148A(d) of the Act. This writ petition stands disposed of.
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