2025 (2) TMI 1768

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....09.07.2024 for the A.Y.2016-17 arising out of order passed under section 147 r.w.s. 144 of Income Tax Act, 1961 (in short 'Act') dated 13.03.2024. 2. Briefly stated facts of the case are that, assessee is in the business of purchase and sale of Cattle Feed. Assessee made purchases from Mr. Bheemisetty Vijay Kumar and sold cattle Feed to various farmers. As per the information available with the Ld. Assessing Officer [hereinafter in short "Ld. AO"] that the assessee has made cash deposits amounting to Rs. 30,72,500/- and Rs. 29,45,500/- in State Bank of Hyderabad, Gunfoundary Branch and State bank of Hyderabad, Sathenpalle Branch, respectively during the impugned assessment year. Since assessee has not filed return of income, notice under....

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....ed the addition made by the Ld.AO and dismissed the appeal of the assessee. 4. On being aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising following grounds of appeal: - "1. The show cause notice under section 148A(b) dated 18.02.2023 served on the assessee through post on 22.02.2023 is invalid as the same has not given 7 clear days for compliance, consequently the entire reassessment proceedings are invalid and void ab initio. Further, the information relied on is not provided to the assessee along with the notice which also vitiates the reopening. 2. The notice under section 148 dated 24.03.2023 issued by the Income-tax Officer, Ward-1(1), Guntur is invalid for the reason that the not....

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....1049895555(1) dated 18.02.2023 was served on the assessee by post on 22.02.2023 and was required to furnish reply on or before 27.02.2023. In this connection, Ld.AR submitted that the minimum requirement of seven days as prescribed under section 148A(b) was not followed and hence the assessment order is deemed to be void abinitio. 6. Further, he also submitted that since the income escaping assessment is below Rs. 50 lakhs no notice under section 148 of the Act shall be issued as per section 149(1)(b) of the Act he therefore pleaded that on this ground also assessment order is deemed to be null and void. Further, Ld.AR submitted that the Ld. AO has not provided the details on the basis on which the notice under section 148 of the Act was....

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.... by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);" 10. On bare reading of sub clause(b) of the Act, it is very clear that the assessee shall be served with show cause notice requesting him to show cause by providing him not less than "7 days" but not exceeding 30 days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf. 11. Further, section 149(1)(b) of the Act is reproduced below for reference:-....