Court upholds assessing officer's findings, dismisses challenge on lack of evidence. Case referred to Enforcement Directorate.

The court upheld the impugned order dated 30th March, 2023, finding that the assessing officer's conclusions were supported by material evidence. The petitioner's challenge based on lack of evidence and disputed documents was rejected. The court determined that the proceedings were conducted within jurisdiction, without procedural irregularities, or violation of natural justice principles. Given the significant financial scam involving unaccounted cash transactions with Anil Kasera, the court dismissed the writ petition and directed referral of the case to the Enforcement Directorate for further action. Compliance was scheduled for 13th June, 2023.

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Issues involved:
The judgment involves a challenge to an order under Section 148A(d) of the Income Tax Act, 1961 for the assessment year 2019-20, and the legality of a subsequent notice under Section 148 of the Act.

Summary:
The petitioner challenged the impugned order dated 30th March, 2023, alleging lack of material evidence against them and disputing the documents provided by the investigation wing. The assessing officer's findings were based on documents showing unaccounted cash transactions with a broker named Anil Kasera, involving several crores of rupees. The modus operandi included acknowledging cash loans through a 'Rukka,' using pre-decided currency note numbers, and exchanging messages for collection/delivery of cash. The assessing officer found that Rs. 10.36 crore had escaped income assessment in the case. The court noted that the findings were based on material evidence and declined to interfere with the impugned order.

The court found that the impugned proceeding was not without jurisdiction, lacked procedural irregularities, or violated principles of natural justice. Due to the nature of the case involving a significant financial scam with similar modus operandi in other cases, the court dismissed the writ petition and directed the Principal Chief Commissioner of Income Tax to refer the case, along with others involving Anil Kasera, to the Enforcement Directorate for further action. The matter was listed for a compliance report on 13th June, 2023.

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