2025 (10) TMI 706

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....arned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule for and on behalf of the respondent. 3. Considering the controversy arising in this petition in narrow compass, with the consent of learned advocates appearing for respective parties, the petition is taken up for final hearing today. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 12.4.2024 issued under Section 148 of the Income Tax Act, 1961 (for short 'the Act') for A.Y. 2016-17 as well as order dated 12.4.2024 passed by the respondent under Section 148A(d) of the Act for the A.Y. 2016-17. 5. Brief facts of the petition are as follows: 5.1 The assessee being late Pradeep Roshanlal....

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....ct wherein respondent authority had directed the petitioner to show cause and justify the source of cash deposits made during the year along with documentary evidence. It was further communicated to provide cash-flow statement for the year under consideration as well as the copy of certain ledger Accounts. 7. It is the case of the petitioner that the assessee being late Pradeep Roshanlal Jain, was proprietor of Arihant Petroleum and was engaged in trading of petroleum, diesel and other petroleum products under the dealership IOCL. The location of business of late Pradeep R. Jain was in a remote place in Devgad Baria, Dahod, etc., therefore, the majority entry of transactions were carried out only in cash only. Therefore, the aggregated t....

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.... 148 of the Act, shall be through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in Section 148 of the Act for issuance of notice and in a faceless manner, to the extent provided in Section 1448 of the Act with reference to making assessment or reassessment of total income or loss of assessee; 8.3 That the respondent Authority has admittedly reopened the case upon directions received by him from Pr. Commissioner of Income Tax, Vadodra as mentioned in the letter dated 28.02.2024, without forming his own independent opinion first, and then seek approval, which is completely against the provisions of Section 148 of the Act. Mr. Shah has relied upon the decision of the Hon'ble Ape....

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....s to the tune of Rs.652.32 lakh including cash to the tune of Rs. 117.03 lakh deposited during demonetization period. Moreover, the petitioner has explained the objection replied with regard to cash deposits made. The assessee has explained that the business being in rural area of Gujarat and also with regard to petroleum products, the end-users used to make cash deposit instead of any UPI payment. Thus, the petitioner has explained the cash deposit in bank account during the Assessment Year as well as during the demonetization period. The Assessing Officer, however, has discarded such explanation by only observing that the petitioner has failed to submit supporting and corroborative evidence providing direct nexus of cash deposit during th....