2023 (7) TMI 1637

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....Saheli Jewelers at Bhilai (C.G.). His PAN Number is AJCPS2009Q and he submitted his return of income for Assessment Year 2016-2017 on 10.10.2016 where total income was declared as Rs. 88,80,040/-. In support of the Income Tax Return, an audit report in Form No.3CB and 3CD under Section 44-AB of the Income Tax Act was also submitted. Surprisingly, the petitioner received a notice issued by respondent No.3 under Section 148A(b) dated 27.03.2023 through a registered post calling upon the petitioner to explain as to why his case for assessment year 2016-2017 should not be reopened. The petitioner submitted a reply to the notice on 03.04.2023 through e-mail before respondent No.2 along with the ledger account of M/s. Navkar Jewelers, Durg appearing in Account Books of M/s. Saheli Jewelers, Durg, wherein the total transaction with M/s. Navkar Jewelers was to the extent of Rs. 12,37,62,890/- in respect of the purchase and sale of gold bullion. On 10.04.2023, an order under Section 148-A(d) of the Income Tax Act was passed and thereafter notice under Section 148 of the Income Tax Act was issued. 3) The petitioner preferred a Writ Petition No.119/2023 before this Court against a notice d....

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....at in an earlier round of litigation, this Court has categorically directed the Revenue to supply the documents, which are the foundation of the order passed under Section 148A (d) and notice issued under Section 148 of the Income Tax Act but same has not been complied with in its letter and spirit. He has placed reliance on the judgments passed by the Hon'ble Supreme Court in the matters of Union of India and others Vs. Ashish Agarwal (supra), Red Chilli International Sales Vs. Income Tax Officer & Anr., reported in 2023 SCC Online SC 237 and judgment passed by the High Court of Madhya Pradesh Indore Bench in the matter of Principal Commissioner of Income Tax-I Vs. Shri Pukhraj Soni passed in Income Tax Appeal No.53/2017 dated 06.02.2019 and judgment passed by the High Court of Madhya Pradesh at Jabalpur in the matter of Sita Ram Gautam Vs. Deputy Commissioner of Income Tax in Writ Petition No.8416 of 2023 decided on 20.04.2023. 6) On the other hand, learned counsel for the respondents would submit that during the survey under Section 133A of the Income Tax Act on Pagaria Group, Sadar Bazar, Raipur, one Mohit Jain was found along with the cash amounting to Rs. 33,00,000/- on 11....

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.... October 2019 unless a computer generated Document Identification Number (DIN) has been allotted. His next contention is that according to a memorandum dated 20.02.2023 issued by the Department of Revenue, Ministry of Finance, Government of India automation is to be done faceless and thereafter a notice under Section 148 of the Income Act is to be issued by the jurisdictional Assessing Officer according to the provisions of Section 151A of the Income Tax Act. 7) Learned counsel for the respondents has placed reliance upon the judgments passed by the Hon'ble Supreme Court in the matter of Raymond Woollen Mills Limited Vs. Income Tax Officer, Centre XI, Range Bombay & Others, reported in 2008 (14) SCC 218, and the judgments passed by this Court in the matters of M/s. Precision Engineering and another Vs. Assistant Commissioner of Income Tax and others, Writ Appeal No.336 of 2019 and Hariom Rice Mill Pvt. Ltd. and another Vs. Assistant Commissioner of Income Tax Circle 2(1), Bilaspur, Writ Appeal No.399/2019. He would submit that when the procedural requirements are satisfied and the inference drawn is based on the relevant materials, the High Court can't exercise the jurisdict....

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.... from the end of the relevant assessment year. Notice beyond the period of three years from the end of the relevant assessment year can be issued where the Assessing Officer would not be in possession of books of accounts or other documents or evidence which would reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment, amounts to or is likely to amount to fifty lacs rupees or more for that year. In such cases, notice can be issued beyond the period of three years but not beyond the period of 10 years from the end of the relevant assessment year. Notice under Section 148 of the Income Tax Act can be issued when there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of an assessee for the relevant assessment year. The specified authority for approving inquiries, providing an opportunity for passing orders under Section 148 of the Income Tax Act and for issuance of notice under Section 148 of the Income Tax Act is the Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of t....

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....cluding those which have been quashed by the High Courts; 25.3 The assessing officers shall thereafter pass an order in terms of section 148A(d) after following the due procedure as required under section 148A(b) in respect of each of the concerned assessee's; 25.4 All the defences which may be available to the assessee under section 149 and/or which may be available under the Finance Act, 2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and; 25.5 The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the similar notices issued under unamended section 148 of the IT Act irrespective of whether they have been assailed before this Court or not. 28. In view of the above and for the reasons stated above, the present Appeals are allowed in part. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under: 28.1 The impugned section 148 n....

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....eld that the incriminating materials in the form of random sheets, loose papers, computer prints, hard disk and pen drive etc. are inadmissible in evidence. 15) In the matter of Sita Ram Gautam (supra), the High Court of Madhya Pradesh held that when the quantum of Income escaped by the assessee is alleged to be less than Rs. 50 lacs, no order could be passed under Section 148A(d) of the Income Tax Act. 16) Now coming to the judgments cited by learned counsel for the respondents. In the matters of Gian Castings Private Limited Vs. Central Board of Direct Taxes and others, CWP No.9142 of 2022 dated 02.06.2022, and Anshul Jain Vs. Principal Commissioner of Income Tax and another, CWP 10219 of 2022, the Punjab and Haryana High Court at Chandigarh while dealing with a similar issue held that where the proceedings have not even been concluded by the statutory authority, the writ Court should not interfere at such premature stage. It is further held that it is not a case where from a bare reading of notice it can be axiomatically held that the authority has clutched upon the jurisdiction not vested in it. The correctness of order under Section 148A (d) of the Income Tax Act is bein....