TaxTMI 
TaxTMI 
2024 (8) TMI 824
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....Income Tax Act, 1961 (said Act for short). The facts of the case in brief are as follows. 3. The petitioner is paralysed and therefore represented by his wife. The petitioner is running the business of Hardware and Paint (Retail) which is a proprietorship firm in the name and style of Dilip Traders at Naikwado, Calangute, Goa. The petitioner has been filing his income tax returns and paying the necessary tax for more than ten years. he petitioner along with his wife filed returns for the Assessment Year 2017-18. A notice under Section 142 (1) and Section 129 of the said Act was issued to the petitioner and upon necessary explanation given by the petitioner and after due verification the assessment was completed by accepting the income re....
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....1,04,870/-. She submitted that the case of the petitioner was selected for scrutiny through Computer Assisted Scrutiny System (CASS). It is submitted that the scrutiny assessment was completed on 31.12.2019 under Section 143 (3) of the said Act by accepting the return of income of the assessee. Further, the said assessment was audited by the Internal Audit Party on 13.03.2021 and the said Internal Audit Party raised the objection that the assessee has cash balance of Rs. 6,30,856/- as on 08.11.2016 whereas, the assessee had deposited cash of Rs. 71,81,000/- in Specified Bank Notes (for short SBNs) during the demonetization period. It is submitted that the business of the assessee was not amongst those which were permitted to receive SBNs cu....
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.... examining the records and considering the reply of the party to the notice under Section 148A (b), an Order under Section 148-A (d) of the said Act was passed on 27.03.2024. It is submitted that the issue raised in the notice of reopening is required to be examined in detail and the present case is not one in which the notice could be quashed at the initial stage in exercise of extraordinary powers of this Court under Article 226 of the Constitution of India. According to Ms Razak, as per the material on record, the case of the petitioner involves escapement of income from the tax net and consequently the income for the relevant assessment year requires to be reassessed. An objection is further raised that the petitioner has an adequate, a....
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....y be specified in such notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the ....
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....stitution of section 147 of the Act by the Direct Tax Laws (Amendment) Act, 1987. This Court considered the changes made in section 147 and found that prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under two conditions i.e., (a) the Income-tax Officer had reason to believe that by reason of omission or failure on the part of the assessee to make a return under section 139 for any assessment year or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax had escaped assessment for that year, or (b) notwithstanding that there was no such omission or failure on the part of the assessee, the Income-tax Officer had in consequence of informa....
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.... A.O. During the course of assessment proceedings has queries about the sources of SBN currency deposited during the demonetization period. For which, the assesses submitted the sources out of business receipts. The assessee also submitted the cash book which is placed on record. he A.O. In the concluding para has mentioned that the cash balance as on 08/11/2016 and hence the sources of SBN are duly explained." 18. The record thus shows that in the scrutiny assessment under Section 143 (3), the issue of deposit of SBNs by the assessee during the demonetization period has been examined in detail by the Assessment Officer and the same objection is now raised by the audit party which, in our considered view, would amount to an attempt to re....