2025 (8) TMI 1650

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....nding Counsel Ms. Maithili Mehta waives service of notice of Rule on behalf of the respondent. 3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of the order passed under Section 148(d) of the Income Tax Act, 1961 (For short 'the Act') dated 31.03.2022 whereby the respondent has held that this was a fit case for issuance of notice under Section 148 of the Act for the reason that income chargeable to tax has escaped assessment and the notice of even date issued under Section 148 of the Act for Assessment Year 2015-16. 4. The assessee filed return of income declaring total income of Rs. 74,74,450/- on 28th August, 2015 for the Assessment Year 2015-16. Subsequently the return was p....

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....ies by way of banking channel against cash to the tune of Rs. 1,25,00,000/- under various head from Mehta Finance (AACFM5349L) and other Mehta Soni Group of companies. Considering the above facts, you are requested to submit your explanation/clarification alongwith supporting documentary evidences, if any, relating to the issue as discussed above on or before the date mentioned in the notice." 6. The petitioner submitted reply along with the relevant documents to the said notice on 22nd March, 2022 contending that the petitioner has availed the temporary loan from Mehta Finance through banking channel and therefore, the petitioner is not a beneficiary of the alleged accommodation entry, as stated in the notice issued by the respondent und....

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....led by the petitioner from the Mehta Finance. 10. It was submitted by Mr. S.N. Divatia, learned advocate for the petitioner that there is no income, which can be said to escape the assessment, more particularly when the petitioner has not availed any benefit out of the alleged accommodation entry admitted by Mr. Dipak Rasiklal Mehta for the Mehta Finance during the course of such proceedings conducted by the respondent authority on 30th July, 2018. 11. It was further submitted that in view of any tangible material available on the record or referred by the Assessing Officer to reopen the assessment so as to hold that the petitioner is a beneficiary of the accommodation entry, it cannot be said to be a fit case to reopen the assessment. 1....