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2022 (7) TMI 865 - HC - Income TaxReopening of assessment u/s 147 - validity of notice ssued u/s 148A - non-disclosure of cash deposited in the bank account - alleged income which is said to have escaped assessment is much below Rs. 50,00,000 - HELD THAT:- As while passing an order u/s 148A the authority is required to reach satisfaction to not only that income chargeable to tax has escaped assessment, but in case where three years have elapsed from the end of the relevant assessment year, the order u/s 148 for issuance of notice u/s 148 could be passed if there were no statutory impediment as contained in Section 149 Sub-section (1) (b) of the Act, referred to hereinabove. The authority, as is apparent, sought to bridge this statutory impediment not on the basis of any material available on record but only with the help of a surmise that the assessee may have some more accounts. Even before this Court, when the reply has been filed by the respondent, no material has been placed to show that at the time when the authority passed order under Section 148A of the Act, there was some material on record that the income chargeable to tax which escaped assessment amount to or is likely to amount Rs.50,00,000/- or more for that year. On conjoint reading of the provisions contained in Section 148A and what has been provided u/s 149, it is vividly clear that in order to initiate proceedings u/s 148A, it is not enough that in case where notice is proposed to be issued under Section 148 after three years have elapsed from the end of the relevant assessment year that there should exist material available on record to reach to conclusion that some income chargeable to tax has escaped assessment, but the amount should be more than Rs.50,00,000/-. Only on the basis that the cash deposits chargeable to tax have escaped assessment, without anything more, the authority was not justified in jumping to the conclusion that the assessee may have more bank accounts. If such an interpretation is placed on the provision of Section 148A (d) of the Act with reference to expression ‘material available on record’, then in that case, it will open flood gate and even without availability of any material, the authority would be initiating proceedings u/s 148 of the Act, which will completely frustrate the object of incorporation of Section 148A in the Act. It is well settled principle of interpretation that the taxing statute is required to be construed strictly. The interpretation as has been suggested by the learned counsel for the revenue cannot be placed upon the expression ‘material available on record’ to include possibility of collection of any relevant or tangible material for opening of proceedings under Section 148A of the Act. Present is a case where the respondent has failed to place before the Court any material to suggest that the income exceeding Rs.50,00,000/- chargeable to tax has escaped assessment, which would warrant issuance of order under Section 148A (d) of the Act followed by issuance of notice under Section 148 of the Act. - Decided in favour of assessee.
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