9911796707
TMI Blog2024 (2) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... Y 2015- 2016 had escaped assessment. After the decision of the Supreme Court dated 04.05.2022 in the case of Union of India Vs. Ashish Agarwal (2022) 444 ITR 01 (SC), notice under Section 148A(b) of the Act was issued on 30.05.2022. The petitioner responded on 11.06.2022, demanded the details and the documents. Additional objections were filed on 14.06.2022. The information reproducing the worksheet mentioning the name of petitioner and other entities who had provided loan to M/S Om Sokhal Builders and Construction Private Limited was supplied on 27.06.2022. After rejection of objections on 26.07.2022, letter for issuance of a DIN No. to the notice under Section 148 of the Act was issued. Hence, the writ petition. 3. During the pendency of the petition, order under Section 147 read with Section 144(B) of the Act was passed on 25.05.2023. The petitioner preferred an appeal, but on 15.11.2023 filed an application for withdrawal of the appeal stating that it was filed under wrong impression that the writ petition challenging the reassessment proceedings was rendered infructuous. Arguments of the Petitioner 4. Learned counsel for the petitioner argues that allegedly income of Rs.30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Provided that the provisions of this section shall not apply in a case where,- (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h suggests that the income chargeable to tax has escaped assessment in a previous year only with the prior approval of "specified authority". vii. If the result of enquiry/information available suggests that the income chargeable to tax has escaped assessment, the AO shall provide an opportunity of being heard to the assessee by issuing a show cause notice u/s 148A(b) of the Act. The said notice shall provide between 7 to 30 days' time to the assessee for submitting the reply. A template of show cause notice is enclosed at Annexure-A1 viii. If an assessee requests for a personal hearing, the same may be dealt with following the principle of natural Justice by giving a reasonable period for compliance of notice specifying the date of hearing. ix. As per 3rd proviso to section 149, for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded. x. Further as per 4th proviso to Section 149, where immediately after e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above mentioned issues on or before _______ electronically at www.incometax.gov.in. Guidelines for Enclosures * The AO should enclose copy of all the relevant 'information' available on which reliance is being placed, along with supporting documents (if any). * In the cases where information is received from the investigation wing or any other law enforcement agency, details of letter, brief summary of information along with relevant portion of such report and details of relied upon documents may be enclosed. Such a portion as does not bear reference to the assessee concerned may be appropriately redacted. * Details of enquiry conducted, if any, may be shared if reliance is being placed by the AO on it. * Judicial order (i.e., case laws) on which reliance is being placed, if any. * Refer Explanation 1 and Explanation 2 of Section 148 for what constitutes "information"." Case Law 6. The Supreme Court in the case of Union of India Vs. Ashish Agarwal (2022 SCC OnLine SC 543) (supra) took note of the changes brought by Finance Act, 2021. The relevant part is quoted below:- "6. It cannot be disputed that by substitution of sections 147 to 151 of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 148A, the procedure has now been streamlined and simplified. It provides that before issuing any notice under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (ii) provide an opportunity of being heard to the assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the showcause notice referred to in clause (b); and (iv) decide, on the basis of material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under section 148 of the IT Act and (v) the AO is required to pass a specific order within the time stipulated. 6.5 Therefore, all safeguards are provided before notice under section 148 of the IT Act is issued. At every stage, the prior approval of the specified authority is required, even for conducting the enquiry as per section 148A(a). Only in a case where, the assessing officer is of the opinion that before any notice is issued under section 148A(b) and an opportunit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on application. The information relied upon for reassessment and outcome of enquiry if conducted any, is to be supplied. In case of information having been received from investigating wing or other agency, brief summary of information along with relevant portion of report and details of documents relied upon is to be supplied. The decision as to if it is a fit case for issuance of notice under Section 148 is to be taken with prior approval of the specified authority, on the basis of material available on record and considering the reply filed by the assessee. The order is to be passed within one month from ending of the month when reply was filed and in case no reply was filed within one month from end of month when time to file reply expires. 12. The proviso to Section 148A of the Act provides exception to the applicability of Section 148A of the Act. 13. In the survey conducted of M/S Om Sokhal Builders and Construction Private Limited prior to 1st April, 2021, the documents were seized indicating that petitioner had advanced cash loan of Rs. 2,50,00,000/- and interest of Rs. 30,00,000/- was received by petitioner during the AY 2015-2016. The statement of Shri Ram Gopal Sukhal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
