TaxTMI 
TaxTMI 
2024 (8) TMI 431
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....supplied to the petitioner-company. But before that, on the basis of the verification details an inquiry was conducted and opportunity was provided to the petitioner-company to furnish its explanation. The inquiry report referred to 13 plots sold during the assessment year 2020-21 (F.Y. 2019-20) the considerations for which are said to have been received in cash. The inquiry report further recorded that 13 plots in Shri Shiv Nagar Daizar, Jodhpur were sold to different individuals and the sale deeds were registered between 18th September 2019 to 14th October 2019. The relevant portions of the inquiry report at page 117 of the paper book are reproduced hereinbelow:- "Investigation in the matter of M/s Agarwal Polysacks Limited was pending with the undersigned. 2. It was seen that M/s Agarwal Polysacks Limited sold 13 plots in Shri Shiv Nagar, Daizar, Jodhpur during F.Yr. 2019-20 as per details submitted below. All these plots were sold in cash. Sr. No. Plot Number Name of Purchaser Sale Consideration DLC Rate Date of registry 1 49 Smt. Premlata Rs. 2,60,000/- Rs. 4,50,000/- 19.09.2019 2 21 Smt. Priyanka Kanwar Rs. 2,60,000/....
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....to ascertain the existence of information(s) that may suggest that the income chargeable to tax has escaped assessment and the assessee then is given opportunity to raise his defence during the assessment proceedings and therefore no prejudice has been caused to the petitioner-company. The learned counsel for the Revenue has also referred to the decision "M/s Chetak Enterprises Ltd. Vs. The Assistant Commissioner of Income Tax" rendered by a Division Bench of this Court in D.B. Civil Writ Petition No. 7062 of 2022 and submits that the issue raised by the petitioner-company stands conclusively decided by this Court. 4. The requirement of natural justice that is to say providing an opportunity of hearing does not mean that the assessee should be given personal hearing. The words employed under section 148A(b) indicate that the assessee should be afforded an opportunity of being heard by way of show cause notice and a personal hearing in any form is not contemplated thereunder. This is not in dispute that in response to the show cause notice dated 28th March 2024 the petitioner-company submitted its reply on 3rd April 2024 a reference of which we find in the order dated 5th April 2....
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....scussion above. The assessee has failed to provide satisfactory reply alongwith documentary evidences to the show cause notice. The documentary evidences available with the department suggests that income chargeable to tax has escaped assessment within the meaning of section 147 of the Income-tax Act. In this regard it is stated that as per the requirement of section 148A, the department has to be in possession of information suggesting escapement of income which as per explanation 1 to section 148 means any information in accordance with Risk Management Strategy formulated by Board. "It is pertinent to mention here that the only pre-requisite for issuance of notice under section 148, is information which suggest escapement of income and in this case information has been flagged through High Risk CRIU/VRU of Insight Portal that income of Rs. 57,60,112/- has escaped assessment as assessee has sold plots in cash and income not offered for taxation. 6. Conclusion: The reply alongwith explanation/documents submitted by the assessee have been perused and duly considered as discussed above. The assessee has failed to furnish satisfactory explanation with proper....
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....Debasis Das. 86. We may also notice that the scope of duty cast upon the authority or a body and the nature of the function to be performed cannot be rendered nugatory by imposition of unnecessary directions or impediments which are not postulated in the plain language of the section itself. `Natural justice' is a term, which may have different connotation and dimension depending upon the facts of the case, while keeping in view, the provisions of the law applicable. It is not a codified concept, but are well defined principles enunciated by the Courts. Every quasi judicial order would require the concerned authority to act in conformity with these principles as well as ensure that the indicated legislative object is achieved. Exercise of power should be fair and free of arbitrariness. 6. We would therefore refer to the statutory scheme of the "Procedure for Assessment" under Chapter XIV of the IT Act, 1961. Section 147 of the IT Act provides that in case where any income chargeable to tax has escaped assessment for any assessment year, the Assessing Officer may assess or re-assess such income or re-compute the loss or the depreciation allowances or any other allowa....
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....nd, (d) take a decision whether or not it is a fit case to issue notice under section 148 on the basis of the materials available on record including the reply of the assessee. 9. This is relevant to indicate that under the unamended section 147 the Assessing Officer could have initiated assessment/reassessment proceedings only if he had 'reasons to believe' that the income chargeable to tax of an assessee has escaped assessment. After the amendment in sections 147 and 148 and insertion of section 148-A through Finance Act 2021 with effect from 01st April 2021, the Assessing Officer can initiate a proceeding of assessment/re-assessment on receiving information and the requirement of having 'reasons to believe' has been done away with. Explanations (1) & (2) to section 148 of the IT Act explain the expression "information" on the basis of which the Assessing Officer can proceed under section 148A. In "Union of India & Ors. Vs. Ashish Agarwal" (2023) 1 SCC 617 the Hon'ble Supreme Court held that the Assessing Officer is required to provide all information and materials to the assessee on which the Revenue seeks to place reliance so as to enable the assessee to effectively....
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....the IT Act. 11. The petitioner-company in its reply set up a defence that it has no knowledge about sale of 13 plots by Mr. Kamlesh Kumar Deora who was given a power of attorney on 7th June 2019 by Mrs. Manju Agarwal. She was authorized by the petitioner-company to take a decision about the lands situated at khasra No.33 measuring about 1 bigha and 2 biswa and khasra No.34 measuring about 8 bigha and 18 biswa. The petitioner-company referred also to a civil suit filed against it in the Jodhpur District Court filed by Aditya Singhvi and others for an injunction and order against it seeking restraint not to transfer the subject property comprised under khasra nos.33 and 34 at Daizar, Manaklao and Jodhpur. It is stated that the District Court by an order dated 25th June 2019 restrained the petitioner-company from making any further sale/alienation of the suit property. The petitioner-company took a stand that on account of the fraudulent activity of the power of attorney holder the sale-deeds executed by him shall not amount to sale of the property by the petitioner-company. Though the petitioner-company states that it came to its knowledge that sale-deeds are executed by Mr. Kamle....