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Validity of Income Tax Act Section 148 Notice Upheld The High Court found the jurisdictional notice issued under Section 148 of the Income Tax Act to be valid and within the authority of the assessing ...
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Validity of Income Tax Act Section 148 Notice Upheld
The High Court found the jurisdictional notice issued under Section 148 of the Income Tax Act to be valid and within the authority of the assessing officer. The court dismissed the writ petition, granting the petitioner the liberty to challenge the reassessment order within three weeks from the date of the order.
Issues: Jurisdiction of assessing authority under Section 148 of the Income Tax Act, 1961.
Analysis:
The High Court heard the writ petition extensively on multiple dates. The respondent had filed a counter affidavit, stating that the Assessing Authority had information about cash deposits, including an error where the same amount was uploaded multiple times, resulting in a higher total. The court noted that the assessing authority had recorded reasons to believe in the escapement of income from tax based on the material in possession. Referring to a previous case law, the court found that the impugned notice under Section 148 of the Income Tax Act could not be said to be without jurisdiction. The petitioner was granted time to file a rejoinder affidavit, which was subsequently submitted and considered by the court.
The court carefully reviewed the submissions and concluded that the assessing authority had relevant information about a significant cash deposit, which was not baseless. Therefore, the jurisdictional notice issued under Section 148 of the Income Tax Act was deemed to be valid and within the authority of the assessing officer. As a result, the court found no merit in the writ petition and dismissed it. The petitioner was given the liberty to challenge the reassessment order dated 29.03.2022 in appeal under Section 246A of the Income Tax Act, 1961, within three weeks from the date of the order, with the condition that the appeal, if filed within the stipulated time along with a copy of the court's order, would be entertained without any objection regarding limitation.
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