TaxTMI 
TaxTMI 
2024 (9) TMI 294
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....credit to the account of the petitioner to an extent of Rs. 40,25,000/- that the assessee has not filed the return of income tax for the assessment year 2020-2021. In response to the above notice, the petitioner submitted his reply dated 25.04.2024 wherein, inter alia he has stated that he has received a sum of Rs. 34,25,000/- from one Robert Francis Sahayam as loan through bank account. The said Robert Francis Sahayam is a family friend, who was working abroad. The entire money had been received only through proper banking channel and the same was returnable to the said Robert Francis Sahayam. The copies of the bank account statements to that effect were also enclosed along with the reply. The petitioner in his reply requested for an opportunity of personal hearing and also sought for the basis on which they have arrived at the figure of Rs. 40,25,000/- as representing unexplained credit. 3. The impugned order dated 30.04.2024 under Section 148-A(d) is passed on the finding that the petitioner has not filed return of income tax for the assessment year 2020-2021 as specified under Section 139(1) of the Act and that, the said Robert Francis Sahayam is not covered under the definiti....
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....to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under Section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: ..................... 16. Further pre-Finance Act, 2021, the reopening was permissible for a maximum period up to six years and in some cases beyond even six years leading to uncertainty for a considerable time. Therefore, Parliament thought it fit to amend the Income Tax Act to simplify the tax administration, ease compliances and reduce litigation. Therefore, with a view to achieve the said object, by the Finance Act, 2021, Section....
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....ssing officer may do so and conduct any enquiry. Thus if the assessing officer is of the opinion that any enquiry is required, the assessing officer can do so, however, with the prior approval of the specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment. 22. Thus, the new provisions substituted by the Finance Act, 2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the respective High Courts have rightly held that the benefit of new provisions shall be made available even in respect of the proceedings relating to past assessment years, provided Section 148 notice has been issued on or after 1-4- 2021. We are in complete agreement with the view taken by the various High Courts in holding so." 7. After referring to the judgment of the Hon'ble Supreme Court in the case of Ashish Agarwal, a Division Bench of this Court in W.A.No.1194, 1195 and 1196 of 2023 dated 10.05.2024, held as follows: "11.1. It is thus clear that the object behind issuance of notice under Section....
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.... which reads as under: "12. In the circumstances, though this Court finds that the arguments of the learned Standing Counsel for the Respondent may have merits, I do not intend to express any view in the light of the Circulars which has prescribed the procedure to be followed if a request for personal hearing is made and which expressly provides for grant of personal hearing vide Clause viii of the Department circular in F.No.299/10/2022-Dir(Inv.III)/611, dated 01.08.2022 reads as under: "viii. If an assessee requests for a personal hearing, the same may be dealt with following the principle of natural justice by giving a reasonable period for compliance of notice specifying the date of hearing." I am of the view that the above Circular is binding and it may not be open to the Revenue to contend to the contrary. In this regard, it may be relevant to refer to the following judgments, wherein, it has been consistently held by the Supreme Court that Circulars issued by the Department are binding unless withdrawn. (i) The apex Court in State Bank of Travancore v. Commissioner of Income-tax, [1986] 158 ITR 102 held that even though the clarifications issued by the Revenue being ....
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.... Income-tax, [1999] 237 ITR 889, the apex Court held that the circular issued by the Revenue under section 119 of the Income-tax Act are binding on the revenue and such circulars are meant for ensuring proper administration of the statute and they are designed to mitigate the rigours of the application of a particular provision of the statute in certain situations by applying a beneficial interpretation to the provision in question. (v). In Commissioner of Income-tax v. Kelvinator of India Ltd., [2002] 256 ITR 1 (Delhi), it was held that the Board has power to issue circulars under section 119 of the Income-tax Act and it is trite that circulars which are issued by the Central Board of Direct Taxes are legally binding on the Revenue. (vi). In Commissioner of Customs, Calcutta v. Indian Oil Corporation Ltd., [2004] 165 ELT 257, the apex Court held that the circulars issued by the Revenue under section 37-B of the Central Excise Act, 1944 (which is pari materia to section 28-A of the Act) are binding primarily on basis of language of statutory provisions buttressed by need of adjudicating officers to maintain uniformity in levy of tax/duty throughout the country and not on the ba....