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TMI Blog2025 (5) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, on the basis of the information found during the said survey, the AO issued a notice dated 27.01.2024 under Section 148A (b) of the Act. The information as enclosed with the said notice indicates that the AO had information regarding certain unexplained cash transactions, which suggests that the petitioner's income for the previous year relevant to AY 2018-19 had escaped assessment. 5. The AO alleged that the petitioner had entered into certain unexplained cash transactions amounting to Rs. 37,63,528/- during the AY 2018-19. 6. The petitioner responded to the said notice on 14.03.2024 and furnished his explanation regarding the transactions mentioned in the said notice, which was issued under Section 148A (b) of the Act. However, the AO was not satisfied with the explanation as provided and concluded that it was a fit case for issuance of a notice under Section 148 of the Act. 7. According to the AO, the assessment for AY 2018-19 could be reopened notwithstanding that the alleged transactions during the previous year relevant to AY 2018-19 was less than Rs. 50,00,000/-. Accordingly, the AO issued a notice under Section 148 of the Act. The proceedings culminated in the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant to the assessment years. Therefore, it is a fit case for issuance of notice u/s 148 of the Income-tax Act, 1961." 11. Although, the AO had proceeded on the basis that the allegedly unaccounted cash transactions related to an event, there is no material on record to indicate that the income in various previous years, which is alleged to have escaped assessment is represented by 'an asset' or arises from one singular event or occasion which is spread over several previous years. Although the order passed under Section 148A (d) of the Act does allege that the income chargeable to tax that has escaped assessment is related to an event or occasion; there is no material to indicate the singular occasion or event to which the income that has escaped assessment over several years relates. There is also no asset that represents the income that has escaped assessment. 12. We consider it apposite to set out paragraph 9.2 of the said order that sets out certain transactions which, according to the AO, are suggestive of the petitioner's income escaping assessment: "9.2. In view of the above facts and circumstances of the case, the assessee has unexplained cash transactions amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven by Athar to Avinash to get cheque from Roshan --- 3,00,000 given by Athar to Avinash to get cheque from Roshan --- 1,00,000 given by Athar to Avinash to get cheque from Roshan --- 1,00,000 Given to Mohitji by Athar to get cheque from his father --- 1,00,000 From Mayuresh account via cheque in Athars account before/on 01.07.17 3,00,000 Total 9,00,000 " 14. It is apparent from the above that the alleged cash transactions in different previous years do not relate to a singular event or occasion and are not represented by an asset. 15. The learned counsel for the Revenue submitted that by virtue of Sub-section (1A) of Section 149 of the Act it was permissible to aggregate the quantum of income that has escaped assessment in various assessment years to satisfy the value as mentioned under Section 149 (1) (b) of the Act 16. It is thus relevant to refer to Sub-section (1A) of Section 149 of the Act. The same is reproduced below: (1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or amounts to or is likely to amount to fifty lakh rupees or more of the value referred to in claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 shall be issued for the relevant assessment year,- (a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of- (i) an asset; (ii) expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:] *** *** *** (1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years within the period referred ..... 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