2023 (2) TMI 1120

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.... notice under Section 148 of the Income Tax Act, 1961 (in short, the Act of 1961) dated 22.07.2022 and also the order dated 22.07.2022 under Section 148A(b) of the Act, 1961. 2.The primary contention of the counsel for the petitioner is that the authorities while passing the order under Sections 148A(b) and Section 148 of the Act of 1961 on 22.07.2022 have considered certain transactions which were not part of the notice that was originally issued to the petitioner under Section 148 of the old Act and also under Section 148A(b) of the new Act. 3.The contention of the petitioner further is that if the said 14 Lakh rupees transaction which has been considered by the Department is excluded from the proceedings then the amount would be le....

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....the amount escaping the assessment of an asseessee in that year is likely to be more than 50 Lakhs rupees. In the instant case the amount minus (-) 14 Lakhs added by the Department which did not form part of the notice would bring the total amount to less than 50 Lakh rupees. Thus, prima facie the proceedings would have been attracted by the circular dated 11.05.2022 and it could not had been initiated itself. 6.It is also glaringly visible from the two notices that were issued on 29.06.2021 as also on 25.05.2022 i.e. the notice initially issued under Section 148 of the old Act and under Section 148A(b) of the new Act that the department has not disclosed the fact in its notice of the petitioner having suppressed this 14 Lakh rupees tran....

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....rt from the report. In the case before it, the Calcutta High Court refused to take into consideration the affidavit filed by the IT Department giving some additional reasons. In the present case, the reasons which are given by the IAC for reopening the assessments which are annexed to the affidavit in rejoinder of the appellants are to the effect that in respect of the Assessment Year 1967-68 to 1973-74 there are errors in the principle of allocating headquarters expenses to India which have been deducted. The net effect is that there has been an excess charge of headquarters expenses allocated to India. Each of the notices sets out the relevant error for the accounting year. The reasons, therefore, do not indicate in any manner any deliber....