Court Stays Income Tax Notice and Order Due to Low Income Allegation Below Rs. 50 Lakhs; Interim Relief Granted.

The court granted interim relief to the petitioner, staying both the notice issued under Section 148 and the order under Section 148A(d) of the Income Tax Act, 1961, until the next hearing. The court found that the alleged escaped income of Rs. 14,30,000 was below the Rs. 50 lakhs threshold specified in Section 149(1)(b), rendering the notice and order unjustified. The Revenue's reliance on a CBDT circular was insufficient to override the statutory provisions. The stay allows the respondent time to file a reply.

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Issues involved:
Challenge to notice u/s 148 and order u/s 148A(d) of the Income Tax Act, 1961.

Regarding notice u/s 148:
The petitioner's counsel cited a Supreme Court decision allowing the assessee to raise objections u/S. 149 of the Income Tax Act. The petitioner argued that the alleged escaped income of Rs.14,30,000 is less than the Rs.50 lakhs threshold u/S. 149(1)(b). It was highlighted that a similar issue was stayed by a co-ordinate Bench at Indore. The Revenue's counsel failed to justify issuing an order u/S.148A(d) followed by a notice u/S. 148 when the escaped income is below 50 lakhs. Despite reliance on a CBDT circular, the Court found that statutory provisions u/S. 149 cannot be overridden by administrative instructions. Consequently, the petitioner was granted interim relief, staying the notice u/s 148 and order u/s 148A(d) until the next hearing.

Regarding order u/s 148A(d):
The Court noted the petitioner's argument that the escaped income is significantly below the threshold specified in u/S. 149(1)(b). The Revenue's reliance on a CBDT circular was deemed insufficient to counter the statutory provision. Consequently, the Court granted interim relief, staying the order u/s 148A(d) until the next hearing, allowing time for the respondent to file a reply.

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