TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 333
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.... as repeating his assets in the columns set apart for his spouse and dependents. The Assistant Director of Income Tax, Investigation, Patna, pursuant to orders of the Election Commission of India verified the details of the assets and liabilities disclosed by the petitioner and issued a notice dated 02.11.2021 under Section 131(1A) of the IT Act seeking further details about investments in land, building and vehicles both in his personal name and that of his dependents. The petitioner replied to the same, producing certain documents which are produced in the writ petition as Annexures 3 to 6. A further communication was addressed to the petitioner as per Annexure- 7 requiring him to submit the modes of investment, the statement of term loan accounts, account in the SBI and the statement of all the bank accounts maintained by the petitioner. The petitioner is said to have submitted the same by Annexure- 8, undertaking to produce witnesses to substantiate the documents produced. By Annexure-9 petitioner was requested to submit the PAN and address of one other person along with whom the petitioner had acquired a land, the sale-deed of which was earlier produced. 2. The petitioner the....
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....egulate the adjudication as to whether there is actually an escaped income, capable of being added on, under Section 148 of the IT Act. The learned Senior Standing Counsel would point out that the very same Division Bench has held otherwise in CWJC No. 14188 of 2022 by judgment dated 21.06.2023 in the case of Anju Singh v. The Chief Commissioner of Income Tax (In Situ) Patna. It is also pointed out that the information, as has been stated by the petitioner himself, was available from the declaration made by the petitioner along with his nomination papers and the details were supplied by the petitioner himself pursuant to a notice under Section 131(1A). There is no further information that could be supplied to the petitioner and in that circumstance the contention should be negatived. The documents produced by the petitioner himself is relied on to further the contention of there being no further information to be supplied to the petitioner. 5. At the outset, we will look at the coordinate Bench decisions which were placed before us which according to the department are conflicting; which contention according to us is not correct. Alkem Laboratories Limited (supra) was a case in wh....
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....of a subsequent amendment and we extract hereunder the succinct interpretation placed on the provision and the resultant consequence on the facts of the case as coming forth from Paragraphs 15, 16 and 17 of the judgment:- "15. An assessee does not come in picture at the first stage stipulated in Clause (a) hereinabove which relates to an enquiry to be conducted if required with respect to an information which suggests that the income chargeable to tax has escaped assessment. For an enquiry under Clause (a) of Section 148A, the Assessing Officer must have some information, for conducting an enquiry. Conducting an enquiry under Clause (a) of Section 148A is not mandatory and as is clear from the language of the provision, which can be done, 'if required'. The second stage stipulated in Clause (b) of Section 148A requires service of notice on the basis of the information suggesting that income chargeable to tax has escaped assessment for a relevant assessment year, with the result of the enquiry conducted, if any, as per Clause (a). By issuance of notice under Clause (b), an opportunity of hearing is provided to the assessee so as to enable the assessee to object to the proposed iss....
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....cified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment: (ii) provide an opportunity of being heard to the assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the show-cause notice referred to in clause (b); and (iv) decide, on the basis of material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under Section 148 of the IT Act; and (v) the AO is required to pass a specific order within the time stipulated." 9. We have to look at the facts arising in the above case with the above interpretation of the provision under Section 148A in our minds. The petitioner was issued with a notice under Section 131(1A) produced at Annexure-2. It has been very specifically stated that the notice is pursuant to verification of the affidavits filed by the candidates contesting elections as mandated by the Election Commission of India. The disclosure of assets and liabilities were compared with the information available from the records of the department and sources of income with r....
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....tioner pursuant to the notice based on which a further notice was issued under Section 148A(b) in which the basis of the notice is to be disclosed; the absence of which is very evident. But for the description of unexplained investment with respect to landed property and vehicle and the amount of escaped income proposed, nothing else was stated. It is very evident that the details sought for under Section 131(1A) were with respect to separate investments made on agriculture land, inherited commercial land, investments made in the property belonging to the HUF comprising of the petitioner and his family members, deposits in banks and two vehicles purchased by himself and his son. There is no specification as to which among them was sought to be proceeded against under Section 148. 13. Further, the petitioner has now produced a corrigendum issued by the department as Annexure- 16 dated 30.05.2023. The corrigendum has more specification in so far as the unexplained investments, with respect to purchase of agriculture land coming to Rs. 26,72,000/- and the purchase of a vehicle coming to Rs. 6,69,277/-. We cannot but notice that the corrigendum is dated 30.05.2023 while the order pass....