2026 (4) TMI 1024

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....tio. 2. In assuming jurisdiction U/s 148 of the Income Tax Act by issuing notice for the AY 2020-21 dated 23-03-2024 by JAO, it is submitted that the issuance of notice u/s 148 by JAO is illegal in light of provisions of section 151A of the Act, thereby making the entire proceedings and resultant impugned orders void ab initio. 3. In passing the order dated 17-03-2025 and the CIT(A) erred in confirming the same vide order dated 06-08-2025 in light of the fact that the so-called escaped income is already reflected in the books of account of the assessee and it be so, there is no question of escapement of income. It may be held as such and the orders be quashed and set aside. 4. In not appreciating the fact that the....

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....rest income. Based on information received under the e-Verification Scheme, 2021 through the Insight Portal under section 135A, the Assessing Officer observed that the assessee had received 19,42,456/- as interest income from Malti Tarunkumar Shah (as reflected in Form 26Q under section 194A), which was not properly disclosed as per departmental records. Consequently, a notice under section 148 was issued on 23.03.2024 by the JAO, Ward-1 Mehsana, with approval under section 151 dated 22.03.2024. The assessee failed to respond with a return under section 148 within the stipulated time. Subsequent notices under section 142(1) dated 30.07.2024, 08.10.2024, and 13.01.2025 were issued and partially complied with. The AO observed that the assesse....

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....is amount does not match with the ITR filed by the assessee and therefore, 148 notice has been issued. In this regard, it is stated that the assessee is engaged in foodgrain business as well as Sharafi interest business and return has been filed u/s 44AD. It is not correct to say that no details were filed by the assessee. Kindly see AO's order page 3 para 4.2, sub-para 2 wherein, copy of P & L Account of Sharafi business was also attached and therefore, it is stated that the amount of Rs. 64,30,020/- includes the amount of Rs. 19,42,456/- and therefore, there is no such escapement of income. The entry passed by Maxim Exports as per AO's order page 5 is not binding to the assessee because the assessee has included amount of Rs. 19,4....