9911796707
TMI Blog2024 (1) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Section 148A(b) of the Act dated 31.03.2023. It is further submitted that no information could be sought for separately for the assessment year 2018-2019 since the appeal is pending before the appellate authority and the re-assessment proceedings in relation to the said year has been challenged by the appellant before this court and by order dated 15.03.2022, the matter stood remanded back to the assessing officer. 3. It is further submitted that the notice dated 31.03.2023 issued under Section 148A(b) of the Act cannot be modified or amended by a subsequent communication and the only option available was to drop the proceedings and issue fresh notice if the same is permissible under law. Further it is contended that the respondent assessing officer did not conduct any independent investigation or enquiry under Section 148A(a) of the Act before initiating proceedings by issuance of a notice under Section 148A(b) of the Act. Further it is contended that the re-assessment proceeding is time barred and cannot be carried on against the appellant. 4. Mr. Vipul Kundalia, learned senior standing counsel appearing for the respondent on the other hand would contend that the notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 131 of the Act was also issued to the assessee on 04.02.2023 with a request to furnish certain documents and information in order to examine the nature of transaction which in the opinion of the assessing officer was suspicious. It is further stated that in response to the said summons, the assessee had neither appeared nor had made any submission. It is further stated that the assessee which was a company incorporated during 2007 had an authorized share capital of Rs. 5,000,000/- and its paid-up capital was Rs. 11,22,000/-. The bank account statements in two bank accounts maintained with Standard Chartered Bank Limited, Kolkata were perused and the transactions were analyzed and on such analysis, it was found that the assessee has made huge cash deposits in different financial years. The details of such deposits for the financial years 2016-2017, 2017-2018 and 2018-2019 were furnished in a tabulated form. Further it has been stated that as per the return of income filed by the assessee it is seen that the assessee had shown meager and/or negative profit before tax in comparison to turnover in its income tax return. Therefore, the assessing officer opined that the financials sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings in relating to the said year has been challenged before this court and by order dated 15.03.2022, the Division Bench remanded the matter back to the assessing officer and the same issue is sought to be agitated through the notice issued under Section 148A(b) of the Act. Further it was submitted that a bare perusal of the notice makes it evident that though the notice calls for documents relating to various assessment years which is beyond the purview of law and admittedly notice for the assessment year 2016-2017 has been issued but documents in relation to the assessment years 2017-2018, 2018-2019 and 2019-2020 have been called for. The assessee sought a clarification as to what are the documents which the assessing officer seeks in relation to the assessment year 2016-2017 since clubbing of various assessment years is not permissible under law. On receipt of such reply, the assessing officer by email dated 20.04.2023 addressed to the assessee informed its Director that they are required to submit the details of cash deposits made in a particular bank account in the name of the assessee during the financial year 2015-2016 relevant to the assessment year 2016-2017 and such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the assessee were rejected and it was held that it is a fit case where notice under Section 148 of the Act has to be issued for the assessment year 2016-2017. 11. As could be seen from the notice issued under Section 148A(b) of the Act, the same pertains only to the assessment year 2016-2017 as has been mentioned in the tabulated form in page 1 of the notice. On carefully going through the information which was furnished to the assessee in the form of an annexure to the said notice, it is seen that the assessing officer sought to initiate re-assessment proceedings only for the assessment year 2016-2017. It is no doubt true that the information which was received by the department pertaining to the three financial years have been set out but nonetheless, the re-assessment proceedings which have been proposed to be initiated pertained only to the assessment year 2016-2017. The assessee raised an objection in their reply dated 20.04.2023 stating that notice cannot be issued by clubbing three assessment years. On receipt of the reply, the assessing officer in no uncertain terms has clarified by email dated 20.04.2023 that they were required to submit the details of cash dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conduct an enquiry, or in other words if in the opinion of the assessing officer, an enquiry is required to be conducted, such enquiry can be conducted with the prior approval of the specified authority with respect to the information which suggests that the income chargeable to tax has escaped assessment. The assessing officer while dealing with this objection raised by the assessee has stated that the information was specific and therefore no enquiry under Section 148A(a) of the Act was deemed to be required. This finding rendered by the assessing officer cannot be stated to be erroneous for the court to interfere. Thus, the procedure under Clause (a) of Section 148A is not applicable to the case on hand. If such is the conclusion that is to be arrived at, then the assessing officer before issuing any notice under Section 148 of the Act, in terms of the Clause (b) has to provide an opportunity of being heard to the assessee by serving upon him a notice to show cause within such time as may be specified in the notice which shall not be less than seven days but not exceeding thirty days, as to why a notice under Section 148 should not be issued on the basis of information which su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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