TaxTMI 
TaxTMI 
2022 (5) TMI 528
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....ustice. (d) to provide for the cost of this petition." 2. On 26th April 2022, this Court passed the following order: "1. We have heard Mr. Bandish Soparkar, the learned counsel appearing for the writ applicant for quite some time. We seek assistance of Mr. M.R. Bhatt, the learned Senior Counsel, who would be appearing for the Revenue. 2. Prima facie, the case of the department appears to be that for the Assessment Year 2018-19, the writ applicant had not disclosed about the transactions in his return of income connected with the Social Cooperative Bank Ltd.. In the reasons assigned, we find reference of three bank accounts maintained with the Social Co-operative Bank Ltd. and three bank accounts maintained with the Union Bank of India. So far as the Union Bank of India is concerned, there are hardly any transactions but, there are huge transactions so for as the Social Co-operative Bank Ltd. is concerned. Out of the three bank accounts, according to the writ applicant, one of the bank accounts maintained with the Social Cooperative Bank Ltd. is that of the HUF and the HUF is being assessed independently. Even if one of the bank accounts is that of the HUF still the question ....
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....48A(b) of the IT Act, 1961, you are requested to show cause as to why a notice under section 148 of the IT Act, 1961 should not be issued on the basis of above mentioned information which suggests that income chargeable to tax amounting to Rs.1,80,41,71,133/- has escaped assessment in your case for A. Y. 2018-19." 5. To the aforesaid, the writ applicant filed a detailed reply in the form of his objections under clause (b) of Section 148A, wherein the writ applicant pointed out the following: "1.1 The assessee vehemently objects to above re-opening which is based on incorrect facts and observations. It is submitted that all transactions in bank accounts referred in the notice by your good self belong to assessee (except one which is discussed in detail hereunder) and related to its business and the same have been duly recorded in audited books of account and effect has been given in the return of income filed by the assesse as well. The contention of assesse is explained in detail hereunder. 2. Transactions of Rs.66,75,36,803/- carried out in the bank account with the Social Co-operative Bank Ltd. in account no. 130002016000456 do not belong to the assesse 2.1 Before dealing ....
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....f the proprietary concern. It is submitted that all transactions executed in the above bank account is related to business of the assesse. Source of credit in bank account includes receipt from customers, receipt of unsecured loan, etc which are related to business operation and duly recorded in books of account and debit in bank account includes payment to suppliers for goods and repayment of unsecured loans, etc which are also recorded in audited books of accounts. Copy of annual accounts along with tax audit report is enclosed as Annexure-4 which is audited by independent chartered accountant which proves that all transactions are verified and reported in annual accounts. Hence argument that transactions executed in bank account is not reflected in return of income is incorrect and proceedings cannot be reopened on the basis of same. In order to explain the details of above transaction, the assesse hereby encloses explanation of all transactions executed in above bank account vide Annexure-5 wherein details of transactions are mentioned." 6. While passing the final order under clause (d) of Section 148A of the Act, 1961, all that the Assessing Officer has stated in paras 7 and ....
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.... which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Provided that the provisions of this section shall not apply in a case where,- (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned unde....
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....minary objections filed by the writ applicant against the reasons recorded for reassessment, has not properly dealt with the objections. We take notice of the fact that, while disposing the objections, the AO has concluded that the objections made by the assessee are duly considered and not acceptable. In para-4 of the order, the AO has observed that the transactions made by the assessee company with Rashmi Diamond were bogus entries and the fact of difference in respect of credit entries in the bank account were not brought into knowledge of the AO during the course of assessment proceedings. We are of the view that the AO failed to take note of various objections filed against the reasons recorded. Para-4 of the order as referred to above does not reflect the proper application of mind to the objections raised by the applicant and it could not be said that the objections having been disposed of by passing reason order. In the case of GKN Driveshaft (supra), the Supreme Court has laid down the procedure as to the manner of dealing with the objections raised against the notice under Section 148 of the Act. The Supreme Court has held that when a notice under Section 148 of the Act i....