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2022 (4) TMI 183
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....nts have reopened the assessment year 2015-16, on the ground that the authority have reasons to believe that the income chargeable to tax for the assessment year 2015-16 had escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961, should be set aside. 2. The petitioner has also challenged the consequential notices dated 29.11.2021, 29.12.2021, 17.01.2022 and the Order dated 21.03.2022 and show cause notice dated 25.03.2022, by which the petitioner has been given an opportunity to show cause as to why the proposed variation should not be made and assessment for the year 2015-16 should not be completed accordingly. 3. The petitioner's counsel submits that the petitioner submitted his income tax return along with....
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....e taken the ground that the assesee has earned a bogus profit of Rs. 95,34,584/- as unexplained credit under Section 68 of the Income Tax Act, 1961, which the assessee did not bring to the notice of the Department. 7. The learned Senior counsel submits that as per Section 68 of the Income Tax Act, 1961, the condition precedent for invoking Section 68 is that the assessee either fails to explain the nature and source of a credit in his books of account or the explanation furnished by him is found to be unsatisfactory on an objective consideration of the same by the assessing officer. He submits that the law does not empower any authority to treat an amount as unexplained credit under Section 68 of the Income Tax Act, 1961, without allowin....
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....ment year to the Income Tax Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year or alternatively notwithstanding that there has been no omission or failure as mentioned above on the part of the assessee, the Income Tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year. Further, the Income Tax Officer cannot come to a prima facie conclusion only on a vague feeling that there may be bogus transactions. He also submits that the Apex Court in the case of Madhya Pradesh Industries Ltd., Kingsway, Nagpur Vs. Income Tax Officer, Speci....
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....m in this writ petition could have been considered by the Department at the time of consideration of his reply. He further submits that if the petitioner is ultimately aggrieved with the decision taken by the assessing officer, an appeal can be filed to the appellate authority under Section 246 (i)(b) of the Income Tax Act, 1961. 10. I have heard the learned counsels for the parties. 11. The notice under Section 148 of the Income Tax Act, 1961 had been issued to the petitioner, as the assessing officer had reasons to believe that the income chargeable to tax for the assessment year 2015-16 had escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961. The reasons given for reopening of the assessment of the peti....
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....ated in Para No. 3 & 4 above and also I have gone through the information and verified with the return of income filed for the A.Y. 2015-16. On perusal of the above I am of the opinion that in this case the assessee has earned bogus profit of Rs. 95,34,584/- as unexplained credit u/s 68 of the Income Tax Act, 1961. During the scrutiny assessment u/s 143(3) of the Act, the assessee did not bring this fact before the department and it is found that this is new facts/information, which were not covered in earlier proceedings u/s 143(3) of the Act. In view of the above, I have reason to believe that income of at least Rs. 95,34,584/- has escaped assessment for the A.Y. 2015-16 in the case of Sharda Lunkar and this case is fit for reass....
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....osed variation should not be made and the assessment should not be completed accordingly. 3. Kindly submit your response through your registered e-filing account at www.incometax.gov.in by 23:59 hours of 27.03.2022, whereby you may either:- a. accept the proposed variation; or b. file your written reply objecting to the proposed variation; or c. If required, after filing written reply you may request for personal hearing so as to make oral submissions or present your case. The request can only be made by clicking the Seek Video Conferencing button available against the SCN, in the view notices of this proceeding in the e-proceedings tab on efiling portal. The request can be made only before expiry of comp....