TaxTMI 
TaxTMI 
2022 (7) TMI 865
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt writ petition are that on 15.03.2022, the respondent issued notice under clause (b) of Section 148A of the Act on the basis of certain information which suggested that income chargeable to tax for the assessment year 2015-2016 has escaped assessment within the meaning of Section 147 of the Act. The notice was sent along with the details of the cash deposits in the account of the assessee maintained with the Corporation Bank, which according to the notice disclosed deposit of a total amount of Rs.52,75,000/-. The notice stated that the assessee did not disclose this amount of cash deposit during the relevant financial year and, therefore, on that basis, the proceedings are required to be initiated. Replying to the said notice, the petitioner-assessee stated that the initiation of proceedings on the basis that the cash deposits during the relevant financial year are Rs.52,75,000/- is factually incorrect and according to the petitioner-assessee, the total amount of cash deposit in his bank account in the Corporation Bank was only Rs.19,39,000/-. The petitionerassessee, in order to satisfy the authority that the total cash deposits in that particular financial year were only Rs.19,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd is that the cash deposits are more than Rs.50,00,000/-, this being disputed by the petitionerassessee, is essentially in the realm of factual dispute which could not be gone into by this court in exercise of its jurisdiction under Article 226 of the Constitution of India. His further submission is that the legal requirement as incorporated under Section 148A of the Act is only a prima-facie case for opening of assessment and not a full fledged enquiry in the matter which otherwise would be subject matter of assessment proceedings. He would further submit that the inference drawn by the authority on the basis of the fact that the account in which undisclosed cash deposits of more than Rs.19,00,000/- were made itself suggests that the assessee, who is otherwise an NRI, may have many more bank accounts. He would submit that such an inference taken together with the cash deposit details disclosed during enquiry, by itself, is sufficient to validate the impugned order and issuance of notice under Section 148 of the Act. We have heard learned counsel for the parties and perused the records. After amendment carried out in the income tax under The Finance Act, 2021, even before procee....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, [relate to, the assessee; or (d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.] Explanation.-For the purposes of this section, specified authority means the specified authority referred to in section 151.] The provision is explicitly clear that the Assessing Officer shall, before issuing any notice under Section 148 of the Act, conduct enquiry, the detail....
X X X X Extracts X X X X
X X X X Extracts X X X X
....had escaped assessment, was factually not correct. But then, the authority thereafter, without disputing the transactions, proceeded to pass an order for issuance of notice under Section 148 of the Act on conjecture, which is reflected from what has been stated in para 6 of the impugned order dated 29.03.2022, which is reproduced herein below:- "6. The submission filed by the assessee has been considered under clause (c) of 148A of the Act for A.Y. 2015-16 but not found tenable as the assessee has furnished copy of one saving account only, there may be one or more account(s) in Corporation Bank in his name or PAN. Thus, it is logical to conclude that the assessee's reply is not fully satisfactory with respect to the above mentioned escapement of income in his case for AY 2015-16. It is crystal clear from what has been recorded in para 6 of the impugned order that though the competent authority did not dispute various transactions meaning thereby that the material available on record, did not show any cash deposits more than what was asserted by the petitioner-assessee, which was far less than the amount as stated in the notice under Section 148A (d) of the Act, the officer proc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....before 1st day of April, 2021, if [a notice under section 148 or section 153A or section 153C could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section or section 153A or section 153C, as the case may be], as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this subsection shall not apply in a case, where a notice under Section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per showcause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded: Provided also that where immediately after the exclusion of the period referred to in the immediately p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....49 of the Act, it is vividly clear that in order to initiate proceedings under Section 148A of the Act, it is not enough that in case where notice is proposed to be issued under Section 148 of the Act after three years have elapsed from the end of the relevant assessment year that there should exist material available on record to reach to conclusion that some income chargeable to tax has escaped assessment, but the amount should be more than Rs.50,00,000/-. Only on the basis that the cash deposits of Rs. 19,39,000/- chargeable to tax have escaped assessment, without anything more, the authority was not justified in jumping to the conclusion that the assessee may have more bank accounts. If such an interpretation is placed on the provision of Section 148A (d) of the Act with reference to expression 'material available on record', then in that case, it will open flood gate and even without availability of any material, the authority would be initiating proceedings under Section 148 of the Act, which will completely frustrate the object of incorporation of Section 148A in the Act. It is well settled principle of interpretation that the taxing statute is required to be construed stric....