2023 (10) TMI 209

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....or the assessment year 2019-20 are sought to be initiated. A prayer for prohibiting the Respondent No.1 or any other Income Tax Authority from proceeding further with the reassessment proceedings for Assessment Year 2019-20 has been sought. It is the case of the petitioner that it is a partnership firm formed on 18.04.2018 by five partners for the purposes of carrying on business of wholesale distributorship or C&F Work. The partnership firm was reconstituted on 01.11.2019 and a new partnership firm was registered as 2 out of 5 partners existed from the firm. The remaining partners infused a sum of Rs. 1,75,31,000/- as capital during the FY 2018-19. It is stated that the firm during the Financial Year 2018-19 extended a loan of Rs. 1,75,....

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....iled by the borrowers i.e. the two widow ladies for the Assessment Year 2019-20 has been accepted by the Income Tax Officer Ward (2)(3)(4), Hapur under Section 148(d) of the Act and there was no occasion to doubt the return filed by the petitioner for the Assessment Year 2019-20. It is also argued that the impugned order passed by the Respondent No.1 suffers from the vice of non compliance of the principles of natural justice inasmuch as though a show cause notice was given but no opportunity of personal hearing was afforded. It is further submitted that the reassessment proceedings initiated are without jurisdiction, the time limit provided to submit reply to the show cause notice under Section 148A(b) was in contravention of the requireme....

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....see has escaped assessment to tax. Final determination on the question whether income of assessee has actually escaped assessment is then to be made after notice under Section 148, by passing an order of assessment or reassessment under Section 147 subject to the provisions of Section 148 to 153 of the Act. It is also argued that the petitioner is at liberty to raise all factual issues/objections at the appropriate stage of the proceedings and no prejudice is being caused to the petitioner. It is contended that this Court would not be justified in embarking upon the correctness or otherwise of the information available with the assessing Officer while taking decision under Section 148A(d) of the Act. Reliance has been placed upon a decision....

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....ew there is a specific purpose for not introducing any further enquiry or adjudication in the statute, on the correctness or otherwise of the information, at this stage. The reason for it is obvious. Under the scheme of the Act a detailed procedure has been provided under Section 148 for issuance of notice whereafter the assessing authority has to determine, in the manner specified, whether income has escaped assessment and the defence of assessee, on all permissible grounds, remains open to be pressed at such stage. The ultimate determination made by the assessing authority under Section 147 for reassessment is otherwise subject to appeal under Section 246-A of the Act. Merits of the information referable to Section 148A thus remains subje....