Taxpayer can challenge section 148 notice jurisdiction before assessing officer when income exceeds 50 lakhs threshold

The HC held that a taxpayer can raise jurisdictional issues regarding notices issued under section 148 of the Income Tax Act before the assessing officer. Under section 149(1), notices under section 148 can only be issued when income chargeable to tax is 50 lakhs or more. The petitioner was directed to file a reply to the show cause notice within 30 days, raising jurisdictional issues with supporting documents. The assessing officer must consider these jurisdictional objections and provide a personal hearing opportunity before proceeding with the assessment.

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Issues involved:
The issues involved in this case are challenging the order passed under section 148A(d) of the Income Tax Act for proposing re-assessment proceedings for the AY 2015-16, jurisdictional concerns regarding the income chargeable to tax, and the validity of the notice issued under section 148 of the Act.

Re-assessment Proceedings:
The petitioner sold her land for Rs. 40 lakhs, with the market value shown as Rs. 51 lakhs in the sale deed. The respondent issued a show cause notice under section 148A of the Income Tax Act, questioning the income chargeable to tax for the AY 2015-16. The petitioner contended that her income, after deductions, was below the taxable limit, thus no obligation to file a return. Despite the petitioner's explanation, the respondent passed an order under section 148(A)(d) and issued a notice proposing reassessment, citing lack of proof regarding land purchase costs and expenses.

Jurisdictional Issue:
The petitioner argued that her income derived from the property sale would be below 50 lakhs after deducting expenses, hence the officer lacked jurisdiction to issue the order and notice. The petitioner did not raise the jurisdictional issue in her initial reply to the show cause notice. The respondent contended that the petitioner had the opportunity to provide supporting documents but failed to do so, leading to the order being passed. The court highlighted the provisions of section 149(1) of the Income Tax Act, stating that if the income is 50 lakhs or more, the Assessing Officer has jurisdiction to issue the notice under section 148.

Court Decision:
The court directed the petitioner to file a reply to the show cause notice within 30 days, specifically raising the jurisdictional issue and providing relevant supporting documents. The respondent was instructed to consider the jurisdictional matter after reviewing the petitioner's response and offering a personal hearing. The writ petition was disposed of with these directives, and no costs were awarded.

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