TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 710
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....nder Section 148 of the Act. 4.1. The brief facts of the case are that the petitioner-company which is incorporated under the provisions of the Companies Act, 2013 on 17.10.2019 filed return of income for Assessment Year 2020-21 declaring total income of Rs. 2,58,250/- on 27.11.2020 which was processed under Section 143 (1) of the Act on 28th March, 2021 accepting the returned income. 4.2. The respondent issued an impugned notice under Section 148A (b) of the Act on 05.03.2024 requiring the petitioner to furnish information with respect to source, genuineness and creditworthiness of the persons who gave loans to the petitioner. 4.3. The petitioner filed detailed reply dated 16th March, 2024 objecting to the validity of the impugned notice on the ground that such notice does not disclose any information with regard to the escaped income of the petitioner but it is in nature of inquiry to be conducted under Section 148A (a) of the Act. 4.4. The respondent passed the impugned order dated 24th March, 2024 under Section 148A (d) of the Act rejecting the objection of the petitioner and issued the notice under Section 148 of the Act for re-opening of the assessment. 5.1. At the outse....
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....puted about the investment made in the Krish Group of Companies owned by Mr. Amit Katiyal and family members and it was found from the information that the said vendors of the property of the petitioner were managing all the affairs of the group companies and on the basis of the analysis, it was found that most of the entities were the shell entities used primarily for routing the funds. 6.2. It was submitted that the petitioner has also not denied the investment of Rs.61 crore in the property situated at Delhi and accordingly, as per the information, it was found that the petitioner obtained the loans from the companies whose verification was required to be done and accordingly, the impugned notice was issued and the order was also passed taking into consideration the reply of the petitioner which clearly shows that the loans obtained by the petitioner was not utilised for the purpose for which it was obtained. It was therefore submitted that no interference is called for in the impugned order passed under Section 148A (d) of the Act. 6.3. In support of his submissions, reliance placed on the decision of the Hon'ble Calcutta High Court in case of Champa Impex Private Limited ver....
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....uly all the material facts necessary for assessment year 2020-21 within the meaning of section 147 of the Income Tax Act. On verification of the information flagged in the case of the assessee, it appears that income chargeable to tax has escaped assessment and therefore, before forming the opinion for issuing the notice under section 148, an opportunity of being beard is required to be provided to the assessee as per provisions of section 148A (b) of the Act. Therefore, it is proposed to issue a letter as per provisions of section 148(b) of the Act, requesting the assessee to show cause as to why a notice under section 148 should not be issued on the basis of the information which suggest that income chargeable to tax has escaped assessment for the assessment year under consideration." 8. On perusal of the above details called for by the respondent in the notice issued under Section 148A (b) of the Act, it would be germane to refer to Section 148A (b) of the Act, which reads as under : "Section 148A (b): provide opportunity of being heard to the assessee, [***] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than s....
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....ients of notice which requires as per the statutory provisions of Section 148A (b) are not mentioned. The Assessing Officer has not provided any details with regard to income which has escaped assessment, but has called for the details for the period from the Financial Year 2014-15 to 2015-16 without mentioning the income as escaped assessment for the relevant Assessment Year 2016-17. [37] The Assessing Officer, for the first time, in the order passed under Section 148A (d) of the Act has mentioned about bifurcation of the total transaction of Rs.791.22 Crores out of which credit entries amounting to Rs. 86,63,62,755/- was mentioned pertaining to the period from 1st April 2015 to 27th April 2015 in the Suspicious Transaction Report. [38] On perusal of the impugned order under Section 148A (d) of the Act, the Assessing Officer did not consider any of the contentions raised on behalf of the assessee on merits and reiterated only extract from the Suspicious Transaction Report in para 6.2 of the order. The assessee has been given the entire details of transaction in reply along with the annexures, however, the Assessing Officer did not consider the same and only observed that the....