Petition Dismissed, Show Cause Notice Upheld

The court dismissed the petition, upholding the show cause notice, the order under Section 148A(d), and the notice under Section 148, allowing the petitioner to raise objections during the reassessment process. The court found no breach of mandatory requirements under Section 148A and no violation of principles of natural justice.

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Issues Involved:
1. Quashing of show cause notice dated 05.07.2022 under Section 148A(b) of the Income Tax Act, 1961.
2. Quashing of order dated 19.08.2022 under Section 148A(d) of the Act.
3. Quashing of notice dated 22.08.2022 under Section 148 of the Act.

Summary:

Issue 1: Quashing of Show Cause Notice Dated 05.07.2022:
The petitioner, an assessee with PAN AYKPS5218E, sought to quash a show cause notice issued under Section 148A(b) of the Income Tax Act for the assessment year 2018-19. The petitioner had filed her return declaring a total income of Rs. 4.12 crores and claimed dividend income of Rs. 4.04 crores as exempt under Section 10(35) of the Act. The Assessing Officer issued a notice based on information from the Investigation Wing suggesting the income had escaped assessment, claiming the dividend was a sham transaction.

Issue 2: Quashing of Order Dated 19.08.2022:
The petitioner argued that the order dated 19.08.2022 under Section 148A(d) was passed without providing all relevant documents, thus violating principles of natural justice. The Assessing Officer had supplied some documents but withheld others, citing confidentiality. The petitioner contended that the Assessing Officer's decision was based on incomplete information and sought the quashing of the order.

Issue 3: Quashing of Notice Dated 22.08.2022:
The petitioner challenged the notice issued under Section 148, arguing that the prior approval of the specified authority required under Section 148A(d) was not obtained. The petitioner also claimed that the approval provided was for issuing a notice under Section 148, not for passing an order under Section 148A(d).

Court's Decision:
The court found that the Assessing Officer had followed the procedural requirements under Section 148A, including obtaining the prior approval of the specified authority. The court held that the petitioner had been given an opportunity to be heard and that the information provided was sufficient for forming an opinion on issuing a notice under Section 148. The court emphasized that the Assessing Officer's decision at this stage was only to determine whether it was a fit case for issuing a notice, not a final determination of escaped income.

The court dismissed the writ application, stating that the petitioner could raise her objections in response to the notice under Section 148 and during subsequent reassessment proceedings. The court found no breach of mandatory requirements under Section 148A and no violation of principles of natural justice.

Conclusion:
The court dismissed the petition, upholding the show cause notice, the order under Section 148A(d), and the notice under Section 148, allowing the petitioner to raise her objections during the reassessment process.

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