TaxTMI 
TaxTMI 
2022 (11) TMI 248
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....s writ petition has been filed under Article 226 of the Constitution of India assailing the legality and validity of the order dated 29.07.2022 passed by respondent No.1 under Section 148A(d) of the Income Tax Act, 1961 (briefly 'the Act' hereinafter) for the assessment year 2015-16 as well as the consequential notice of even date issued under Section 148 of the said Act. 3. Petitioner is an assessee under the Act having the status of 'individual'. For the assessment year 2015-16, petitioner filed return of income on 27.11.2015 declaring total income of Rs.45,99,150.00. 4. Assessment case of the petitioner was selected for scrutiny whereafter, respondent No.1 passed the assessment order dated 30.11.2017 under Section 143(3) of the Act hol....
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.... meaning of section 147 of the I.T. Act. 6. In response thereto, petitioner filed reply on 04.06.2022 stating that for the financial year 2014-15, he had earned profits from trading in commodities amounting to Rs.3,96,57,630.00 from M/s. Kayan Securities Private Limited, which was disclosed on the credit side of the profit and loss statement of his proprietary firm-M/s Agarwal Foundries. 7. Notwithstanding the same, impugned order was passed by respondent No.1 holding as follows: The submissions of the assessee have been considered. In the instant case, it was found that M/s Kayan Securities Pvt. Ltd. was actively involved in trading of illiquid options with the sole motivation of generating profits and lossess to evade taxes for its cl....
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.... 148 of the Act. 9. Learned Senior Counsel for the petitioner submits that the profits received from M/s. Kayan Securities Private Limited were shown in the profit and loss statement of the said firm, which was a proprietary firm of the petitioner. Therefore, the assessing officer was not justified in brushing aside the clarification provided by the petitioner and proceeding to issue notice under Section 148 of the Act. 10. On the other hand, learned Standing Counsel for the respondents submits that at the stage of passing an order under Section 148A(d) of the Act, only a prima facie satisfaction is required to be arrived at by the assessing officer as to whether issuance of notice under Section 148 of the Act is called for or not. At thi....