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2024 (1) TMI 369 - RAJASTHAN HIGH COURTReopening of assessment u/s 147 - notice under Section 148A extending period of limitation - cash deposited in the bank unexplained - petitioner made submissions that the show cause notice was issued on the premise that the cash transactions of the petitioner were about Rs.50,00,000/- and extended period of limitation was invoked - petitioner promptly responded indicating that the sum of cash transactions was Rs.33,62,000/- only i.e. less than Rs.50,00,000/- and as the notice was issued after three years from the assessment year, the same was barred by limitation. HELD THAT:- The authority despite the specific indications made by the petitioner, without application of mind and in a wholly mechanical manner came to the conclusion that the amount deposited in cash was Rs.59,75,000/- and consequently, found it a fit case u/s 148 of the Act of 1961. Though the notice was issued on the assumption that the cash deposits were Rs.59,75,000/- by invoking extended period of limitation, as a fact, it was found that the same was Rs.33,62,000/- only and once, the said aspect was clear to the authority, the authority lost its jurisdiction to further continue with the proceedings as the limitation u/s 149(1)(a) of the Act of 1961 of three years would trigger and the authority would lose the jurisdiction on account of limitation, as the amount was less than Rs.50,00,000/-. However, the authority while passing the order u/s 148A(d) in a wholly mechanical manner rejected the plea and proceeded to issue notice u/s 148 of the Act of 1961. Whereafter, proceedings were sought to be converted into notice under Section 69A read with Section 115 BBE which action also is wholly impermissible. Once the notice under Section 148A of the Act of 1961 is found to be barred by limitation, no further proceedings could be initiated under any of the provisions of the Act of 1961 and the purported exercise of jurisdiction pursuant to notice under Section 148A of the Act of 1961 could not be initiated or proceeded with. Thus following the dictum of this Court in case of Abdul Majeed [2022 (7) TMI 865 - RAJASTHAN HIGH COURT] the action of the respondent being barred by limitation cannot be sustained. Decided in favour of assessee.
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