TMI Blog2023 (10) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... able are not required to be determined at the stage of decision by the assessing authority under Section 149A(d). The scope of decision under Section 148A(d) is limited to the existence or otherwise of information which suggests that income chargeable to tax has escaped assessment. Thus, in our opinion, the impugned order under Section 148A(d) of the Act and notice under Section 148 would not warrant any interference under Article 226 of the constitution of India as challenge to such order would be available to an assessee while challenging the order passed in reassessment proceedings consequent to the notice issued under Section 148 of the Act. - Hon'ble Pritinker Diwaker, Chief Justice And Hon'ble Ashutosh Srivastava, J. For the Petitioner : Sharad Tandon,Punit Khare, Shubham Tandon For the Respondent : A.S.G.I.,Gaurav Mahajan, Naveen Chandra Gupta ORDER Heard Sri Sharad Tandon, learned counsel for the petitioner, Sri Gaurav Mahajan and Sri N. C. Gupta, learned counsel for the Revenue. Challenge in this writ petition is to the impugned order dated 25.05.2023 passed by the Assessing Officer, Income Tax Department/Respondent No.4 under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lastly on 10.04.2023 which were duly replied by the petitioner annexing all the documents i.e. copy of assessment order under Section 143(1) contract note of purchase and sale. The Respondent No.4 in continuation of the proceedings issued show cause notice dated 07.05.2023 to show cause as to why proposed variation should not be made which notice was duly replied by the petitioner vide reply dated 12.05.2023. The Respondent No.4 thereafter has passed the impugned order dated 25.05.2023 under Section 147 read with Section 144-B of the Income Tax Act, 1961. The notice of demand has been issued accordingly. On the strength of the above facts, learned counsel for the petitioner has argued that the case of the petitioner is squarely covered by the first proviso to Section 147 of the Act as it stood prior to the amendment by the Finance Act, 2021 which provides that where assessment has already been completed under Section 143(3) of the Act, no reassessment proceedings can be initiated after the expiry of four years from the relevant Assessment Year 2015-16 i.e. 31.03.2020 unless the income has escaped assessment by reason of the failure on the part of the assessee to disclose fully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestigations, it was found that many persons including the assessee has taken long term capital gain (LTCG), exempt u/s 10(38) of the Act in the year under Consideration through investment in shares of HPC BIOSCIENCES LIMITED AND TVS MOTOR COMPANY LIMITED. It was observed that the assessee account of Mridul Securities Private Limited. During the course of investigation proceedings, it was noticed that the contract notes were fabricated and the shares were purchased through the stock market by entry operator controlled entity just before transfer to beneficiary and transferred to the account of the assessee beneficiary within a few days of purchase by way of off market transfer. The name of the assessee also appeared in the list of beneficiaries. Accordingly, the case of the assesses was re-opened u/s 147 of the Act after giving an opportunity u/s 148A(b) of the Act and notice u/s 148 of the Act was issued on 26.07.2022. In compliance to notice u/s 148 of the Act a return of income has been filed by the assessee on 20.08.2022 declaring an income of Rs. 12,69,380/- Accordingly, notices u/s 143(2) and 142(10 of Income Tax Act, 1961 (hereinafter referred to as 'the Act&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned counsel for the Revenue. The Assessing Officer has proceeded to pass an order on 25.05.2023 under Section 148A(d) of the Income Tax Act, 1961 rejecting the objection of the petitioner to the show cause notice under Section 148A(b) of the Income Tax Act, 1961 on the ground that information exists to suggest that an addition of Rs. 1,05,78,856/- and Rs. 2,11,577/- should not be made as per the provisions of Section 69A and 69C respectively. The reply of the assessee has been considered but the same is not found to be satisfactory. The assessee has not offered his unaccounted unexplained income for taxation purpose in his return of income. It is precisely evident that this office has certain information which strongly suggests that the income chargeable to tax has escaped assessment for Assessment Year 2015-16. A consequential notice has also been issued to the petitioner under Section 148 of the Act. The Income Tax Act, 1961 does not contemplate any detailed adjudication on the merits of information available with the Assessing Officer at the stage of passing order under section 148A(d) of the Act of 1961. In our considered view there is a specific purpose for not introd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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