2022 (4) TMI 41

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....n 132 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) is illegal and without jurisdiction and has further sought for striking down the panchnama dated 19.02.2020 at Annexure-A, sought for striking down the impugned Assessment Order at Annexure-B and Notice at Annexure-C. The petitioner has also sought for setting aside of the Assessment Orders at Annexure-B series and the Demand Notices at Annexure-C series.   2. The Learned Senior Counsel appearing on behalf of the petitioner would submit that the action undertaken by the Authority pursuant to Section 132 of the Act unless fulfills the legal requirement of 'reasons to believe' by the appropriate Authority is liable to be set aside. 3.....

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....irectorate of Income Tax (Investigation) and Others Civil Misc.Writ Petition No.1205/2001 reported in 2003 SCC online All 1932 (2003) 264 ITR 472 (2203) 185 CTR 129. By placing reliance on the said authority, it is contended that the information and the material relied upon must have rational nexus to 'reasons to believe' entertained by the Authority and mere rumour may not be sufficient to arrive at a conclusion justifying exercising power under Section 132. It is also contended that the Authority could have initiated proceedings for re-opening of the proceedings under Section 148 instead of taking recourse to Section 132 and subsequently invoking Section 153(a). 5. Learned counsel Sri. K.V. Aravind appearing for the Revenue on ....

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....detailed and tabulated with mentioning of specific figures. It is also noted that the assessee was a non-filer of income tax for the Assessment Year 2019-20. The Note also reveals that the assessee had five rental yielding properties and that investment for construction of properties is not reflected in the books of accounts of the assessee. 10. It is specifically observed that the field enquiries revealed that the assessee had collected cash against sale agreements and uses the amount as unaccounted investment in the form of advance for property purchase. There are specific details relating to the amount paid. It is specifically concluded that in light of the facts stated including the details of the project that the assessee would be i....