TaxTMI 
TaxTMI 
2025 (10) TMI 837
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....expenses as claimed by the appellant without properly considering the facts and evidence submitted. 2. Briefly stated, the facts of the case are that the assessee did not file any regular return of income for the assessment year under consideration. Based on information received through the Insight Portal maintained by the Income-tax Department under the head "Risk Management Strategy - Non-filing of Return" formulated by the Central Board of Direct Taxes (CBDT), the Assessing Officer (hereinafter "AO") noted that the assessee had sold an immovable property for a consideration of Rs. 71,00,000/-, yet had not filed a return of income. Consequently, a notice under Section 148A(b) of the Income-tax Act, 1961 (hereinafter "the Act") was issued, calling upon the assessee to explain the income arising from the sale of the said property. As there was no compliance on the part of the assessee, the AO, after obtaining due approval from the prescribed authority, passed an order under Section 148A(d) of the Act and thereafter issued a notice under Section 148 of the Act requiring the assessee to file a return of income. In response, the assessee filed a return declaring long-term capital g....
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....isition/improvement or deductions if any, the taxable income would be less than Rs. 50 lakhs. It was contended that the decision in Nitin Nema (supra) was distinguishable, as in that case the assessee had duly responded to the notice under Section 148A(b) and furnished computation showing taxable income below Rs. 50 lakhs, whereas, in the present case, the assessee neither filed a regular return of income nor responded to the statutory notices. 6. We have considered the rival submissions and perused the material on record. The core issue is whether the impugned notice under Section 148 was issued beyond the limitation prescribed under Section 149(1)(b) of the Act. For ease of reference, the provision is extracted as under: [Time limit for notices under sections 148 and 148A. 149. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if three years and three months have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years and three months, but not more than five years and three months, have elapsed from the end of the relevant assessment year unless the....
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....ew that AO was correct in assuming the whole of the transaction as undisclosed and as income chargeable to tax. The appellant has the responsibility of filing the appeal within the due date and disclosing the transaction and income in the return of income but it failed to do so. An assessee cannot be allowed to take undue advantage of his own wrong i.e not filing return of income and on reopening claim that even if the total transaction was above Rs 50 lakhs, the income out if it less than Rs 50 lakhs and on technicalities be allowed to claim that the reopening is invalid. Hence, the appeal on this ground is thus treated as dismissed." 6.2 In the present case, the AO issued a notice under Section 148A(b) giving the assessee an opportunity to explain the income corresponding to the sale consideration of Rs. 71 lakhs. No response was forthcoming. In such circumstances, the AO, having no contrary material, proceeded to treat the full sale consideration as income that had escaped assessment. The order under Section 148A(d) was passed with the prior approval of the specified authority under Section 151 of the Act, and the notice under Section 148 was issued accordingly. The relevant ....
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....ear under concerned and why the order u/s 148A(d) of the IT Act should not be passed and subsequently the notice under section 148 of the Act should not be issued to you on the basis of information which suggests that income chargeable to tax has escaped assessment in your case for the FY 2015-16 relevant to AY 2016-17. However, till date no response has been received from the assessee against the opportunity provided u/s 148A(b) of the Income tax Act, which establishes that assessee has no explanation for issue discussed above. The assessee has not filed its ITR despite having high value of financial transaction involving evasion of tax. It is also evident from information available with Assessing Officer that the income chargeable to tax for A.Y.2016-17 has escaped assessment mentioned above. Accordingly, it is concluded that this is a fit case for issuing notice u/s 148 of the I.T. Act. 5. Further, it is to be mentioned that the escapement to the tune of Rs. 71,00,000/- from sale proceeds credited into bank account represents in the form of asset as per provisions of Section 149(1) of the I.T. Act." 6. The Order u/s. 148A(d) is passed with the prior ap....