2025 (11) TMI 345

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....sessment year 2019- 20. 2. Mr. Bag, learned Advocate appearing in support of the writ petition by drawing attention of this Court to the notice issued under section 148A(1) of the said Act dated 31st March, 2025 and the order impugned, has stressed on the fact that though search and survey action was conducted at various spots of finance brokers and evidence was collected during such proceedings and though incriminating material and statement of Sri Sarbejeet Thakur alias, Pathakji, Hitesh Kanodia and Sri Jai Bhagwan Agarwal were recorded, under section 132(4) of the said Act and the statement of one Parveen Kumar Kasera was recorded under section 132(4) of the said Act, the same had not been furnished to the petitioner. 3. Mr. Bag fu....

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....r of Central Excise, Kolkata-II, reported in (2016) 15 SCC 785 b. An unreported judgment delivered by the Division Bench of this Court in the case of Krishna Tisses Pvt. Ltd. v. Union of India dated 28th April, 2023, in MAT 648 of 2023. 6. Independent of the above, there was no material based on which the notice under section 148 of the said Act could have been issued and on such ground, the order issued under section 148A(3) of the said Act and the notice issued under section 148 of the said Act, both dated 26th June, 2025 in respect of the assessment year 2019-20 should be set aside. 7. Mr. Dutt, learned Advocate assisted by Mr. Bhattacharjee, learned Advocate appears on behalf of the income tax department. According to the....

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....eposits have been made in such accounts which does not commensurate with the cash deposits made into the bank accounts. A financial analysis has also been provided in the show cause notice. I find that the petitioner had responded to the said show cause and had categorically denied that the account no.064663500001103 maintained with Yes Bank was that of the petitioner. In fact, it was contended that the said account was of one Champa Impex Pvt. Ltd. wherein the assessee is one of the directors. 10. Incidentally, in this case, the jurisdictional assessing officer did not afford opportunity to the petitioner to cross-examine the third parties. Though failure to give opportunity to cross-examine may constitute an irregularity, and could hav....

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....ased on no evidence or is perverse. There appears to be enough material for issuance of notice under section 148 of the said Act. As rightly pointed out by Mr. Bhattacharjee that even for sake of argument, failure to afford cross-examination would only constitute an irregularity which does not have the effect of vitiating the order. 13. This apart, I find that since the basis of the order is not solely dependent on the third party statements, the judgment delivered in the case of Krishna Tissues Private Limited (supra) does not assist the petitioner. In the said case a fundamental error had been committed by the assessing officer in not providing third party information which was the basis for issuance of the show cause notice. Such is n....