TaxTMI 
TaxTMI 
2026 (4) TMI 387
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....o filed a petition for admission of additional ground dated, 25/02/2026 and has raised a legal ground in light of provisions of sec 149(1)(b) of the Income Tax Act, 1961 r.w.s. 148A(d) of the I.T. Act, 1961. The relevant additional ground raised by the assessee read as under: "Without prejudicing to the other grounds and on the fact and circumstances of the case, that the initiation of proceeding by issuance of show cause notice u/s 148A(b) of the Act, passing of order u/s 148A(d) of the Act, issuance of notice u/s 148 of the Act, 1961 and consequential proceedings are invalid as the alleged escaped income doesn't exceeds Rs. 50 lakhs in terms of sec 149(1)(b) of the Act in so far as the proceeding has been initiated based on wrong....
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....efore, the Ld. AO passed an order u/s 148A(d) of the Act on 23/02/2023 and issued a notice u/s 148 of the Act, dated 25/03/023. In response, the assessee has filed her return of income dated, 03/09/2023, declaring total income of Rs. 2,12,690/-. 6. The case of the assessee was selected for scrutiny. During the course of assessment proceedings, the AO called upon the assessee to explain the source for the said cash deposits and the term deposits. In response, the assessee submitted that she has made cash deposit of Rs. 7,89,000/- in her bank a/c and also made time deposit of Rs. 21,73,950/-. The source for the deposits is out of withdrawal from post office deposit a/c for Rs. 2,48,500/- on 19/01/2015 and Rs. 2,48,500 on 23/10/2015 being m....
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....sessee submitted that the notice issued u/s 148 of the Act dated 25/03/023 is beyond 3 years from the end of the relevant A.Y going by the amount of escaped income which is evident from the additions made by the AO for Rs. 17,17,597/-. The Ld. Counsel for the assessee further submitted that although the AO has considered certain information, which shows the time deposits of Rs. 60,00,000/- made by the assessee in SBH, Gaddinnaram Branch, but finally concluded that the assessee is having only time deposits of Rs. 21,73,950/-. Further, as per the bank statement of SBH Gaddinnaram, the total credits in the Bank account were at Rs. 22,25,873/- which includes cash deposits and other credits being maturity proceeds of postal deposits receipts. Th....
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....hrough the orders of the authorities below. As per the provisions of section 149(1)(a) of the Act, no notice u/s 148 shall be issued for the relevant A.Y, if 3 years have elapsed from the end of the relevant A.Y, unless the case falls under clause (b). Further, clause (b) of section 149(1)(b) of the Act, if three years have elapsed from the end of the relevant assessment year, unless the Ld. AO in his possession books of account or other documents or evidence which reveal that the income chargeable to tax has escaped the assessment amount or likely to Rs. 50 lakhs or more. In the present case, the AO has considered the provisions of section 149(1)(b) of the Act for issuance of notice u/s 148 of the Act on the basis of information flagged by....
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....clearly evident from the findings given by the AO in the assessment order. Therefore, we are of the considered view that the information considered by the AO for the purpose of reopening of the assessment in light of provisions of section 149(1)(b) of the Act is not an information which suggests escapement of income which exceeds Rs. 50 lakhs or more so as to reopen the assessment beyond 3 years from the end of the relevant A.Ys. Although the Ld. Sr. AR for the Revenue argued that at the time of opening of the assessment, the Ld. AO is only required to consider prima facie, information which suggests escapement of income for issue of notice u/s 148 of the Act, but in our considered view, there is no merit in the argument of the Ld. Sr. AR f....