2024 (7) TMI 1768

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.... challenge principally stands raised in light of the judgment rendered by the Court in Ganesh Dass Khanna Vs. Income-Tax Officer and Anr. [2023 SCC OnLine Del 7286] and with it being asserted that since the respondents themselves had in the course of proceedings come to the conclusion that the income which is likely to have escaped assessment falls below INR 50 lakh, the reassessment action is liable to be quashed and set aside. 2. For the purposes of disposal of these writ petitions, we deem it apposite to notice the facts in W.P.(C) 472/2023. For the concerned AY 2014-15, petitioner filed a Return of Income under Section 139(1) of the Income Tax Act, 1961 [Act] on 30 July 2014, and which is stated to have been processed in terms as con....

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....tions:- "5. Considering the principal of natural justice, another notice u/s.142(1) was issued requesting the details of business, audited financials and details with regard to the property purchased in Red Mall, Ghaziabad and source of payment. In submission dated 10.03.2022, the assessee claimed that he has purchased Virtual space out of shop No.A-101, 1st floor, Red Mall, Ghaziabad, U.P vide cheque payment totalling to Rs. 27,78,960/- and no cash payment was made during the purchase. However, the assessee is able to justify only the amount of Rs. 31,24,308/- only, out of the total amount of Rs. 1,33,36,000/- out of which the assessee's share is deemed to be Rs. 44,45,333/-. Hence, the balance amount i.e Rs.13,21,025/- is unaccou....

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.... Fourth Proviso to Section 153A are concerned and the argument of the writ petitioners of the condition of INR 50 lakhs being an unwavering precondition, we find ourselves unable to sustain that submission bearing in mind the indubitable fact that proceedings for search assessment commence upon the issuance of a notice and the AO at that stage having really not had the occasion to undertake a detailed or in depth examination of the evidence collected or come to a definitive opinion with respect to the total income which may have escaped assessment. Since the computation and assessment of income that is likely to have escaped assessment would at this stage be provisional, it would be incorrect to strike down initiation of action on a mere ex....