Latest - TMI e-Newsletter
New User/ Regiser
2022 (9) TMI 553 - Income Tax
Reopening of assessment u/s 147 - validity of proceeding and order issued u/s 148A - whether impugned notice issued u/s 148 shall be deemed to have been issued u/s148A as substituted by the Finance Act, 2021? - HELD THAT:- Notices under Section 148A (d) of the Act have been issued to Rajendra Kumar Verma and Smt. Jaya Jain for taking up the matter for issuance of notice under Section 148 - Income Tax Returns of present petitioner and other two Rajendra Kumar Verma and Smt. Jaya Jain is liable to be examined for the purpose of reassessment as income has escaped assessment during that relevant year to the tune of Rs.1,00,00,000/-. The cases of all the above three are also liable to be examined together under Section 147 of the Act. So far as the time limit of notice as provided under Section 149 of the Act is concerned, the same is in respect of Section 148 of the Act and not for Section 148A of the Act. The petitioner is free to raise an objection about limitation in a proceeding initiated under Section 148 of the Act. As on today, the authorities have found it a fit case for issuance of notice under Section 148 of the Act in compliance
In sub-paragraph (iii), the Apex Court has held ASHISH AGARWAL [2022 (5) TMI 240 - SUPREME COURT] that the Assessing Officer shall thereafter pass an order in terms of Section 148A (d) in respect of all assessee; thereafter, after following the procedure as required under Section 148A of the Act may issue a notice u/s 148 (as substituted). It has also been observed that all the defences which may be available to the assessee including those available under Section 149 of the Act may be available to the concerned assessee and revenue under the Finance Act, 2021 shall continue to be available. Therefore, in compliance of the aforesaid order, the Assessing Officer has passed an order under Section 148A of the Act which is not final adjudication but a preliminary order. The final proceedings are liable to be drawn under Section 148 of the Act, in which the petitioner will get the full opportunity to contest the matter. Writ Petition, being premature, is hereby dismissed.