TaxTMI 
TaxTMI 
2025 (1) TMI 819
X X X X Extracts X X X X
X X X X Extracts X X X X
....e was preceded by two other notices issued under Section 148A (b) of the Act - one dated 31.03.2024 and, the other dated 18.04.2024. 2. Both the said notices contained different information which according to the Assessing Officer (AO) are suggestive of the petitioner's income escaped assessment. 3. The notice dated 31.03.2024 (hereafter the first notice) recorded information to the effect that an agreement to sell of immovable properties was found during the search proceedings and image of the said document was reproduced in the said notice. According to the AO the transaction of sale and purchase of the immovable property was facilitated by the petitioner, which suggested that the Assessee's income had escaped assessment. The relevant extract of the said notice (sans the image of the agreement to sell) is set out below: "2. During the course of search action of SBP group, various loose papers and documents were found and seized. On perusal of seized records, it is found that M/s Capital Properties Consultants Pvt. Ltd facilitated deal between M/s. Shub dev Associates (P) Ltd., through its director Shri. Deepak Kumar s/o Shri. Harbans Lal, 201. Ram vihar, Delhi (110....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y submitted that Agreement of sale as mentioned in the captioned notice was never acted upon and thus in consequence no commission was received by the assessee. To support our aforesaid contention, we requested the parties to furnish their confirmation in that regard. Copy of letters from both the parties to the agreement to sell certifying that the agreement to sell was never acted upon and was cancelled and thus no commission income was due to the assessee firm is attached herewith." 6. It is material to note that the income, which was suspected to have escaped assessment, was confined to the commission on the solitary Agreement to Sell that was allegedly found during the search conducted in connection with the SBP Group. And, there is no material to controvert the petitioner's claim that the said agreement was not acted upon. 7. Apparently, the AO accepted that the sale of the properties, which were the subject matter of an Agreement to Sell that was referred to in the notice dated 31.03.2024, was not acted upon and the sellers had not executed any sale deed in respect of the subject properties. 8. Notwithstanding the above, the AO issued another notice dated 18.04.2024....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not been declared and represent undisclosed income. 6. Based on the above discussion, prima facie it appears that the income chargeable to tax amounting to Rs. 29,87,213/- has escaped assessment in the assessment year under consideration. The stated transactions qualify the requirements specified u/s 149 (1) (a) of the Income Tax Act." 9. It is material to note that the said notice did not contain any allegation of receipt of commission in respect of the transaction which was the subject matter of the Agreement to Sell referred to in the notice dated 31.03.2024. 10. In the given facts, the controversy in the present case is centered around the AO's assertion that the second notice dated 18.04.2024 is in continuation of the first notice dated 31.03.2024 issued under Section 148A(b) of the Act. 11. It is at once clear that the assertion that the second notice is the continuation of the first notice, is ex facie erroneous. The notice dated 31.03.024 issued under Section 148A(b) was confined to the income by way of a commission on a transaction of certain property described as 1, 7, 8, 2 and ½, 3, Kamal Complex, Plot No. 6, Local Shopping Center, Suraj Mal V....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reproduced below: "9. That the information regarding the sale deeds/agreements provided by the office of the Sub-Registrar, Vivek Vihar, has been tabulated as follows: Deed/Agreement No Registration Date Property mentioned in deed/agreement Seller Purchaser 7167 16/09/2019 No. 1, 7 & 8 Kamal Complex, Plot no. 6, Local shopping Centre, Suraj Mal Vihar, Delhi M/s Mayank Associates Pvt. Ltd. M/s Shubdiv Associate Pvt. Ltd. 3969 29/05/2019 No. 3, Kamal Complex, Plot no. 6, Local shopping Centre, Suraj Mal Vihar, Delhi Manju Bansal Simran Kaur 2868 23/07/2020 No. 7, Kamal Complex, Plot no. 6, Local shopping Centre, Suraj Mal Vihar, Delhi M/s Shubdiv Associate Pvt. Ltd. Sunita Choudhary 2888 23/07/2020 No. 8, Kamal Complex, Plot no. 6, Local shopping Centre, Suraj Mal Vihar, Delhi M/s Shubdiv Associate Pvt. Ltd. Uday Vir Singh" 15. It is clear from the above that the information on which the first notice (notice dated 31.03.2024) is based, is not the information on which the second notice dated 18.04.2024 is premised. The information, which according to the AO, was suggestive of the petitioner's income....