TaxTMI 
TaxTMI 
2026 (4) TMI 1107
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....lowing grounds of appeal:- i) Whether the Learned CIT(A) erred in quashing the assessment proceedings based solely on the High Court judgment in DBCWP 18363/2019, without considering the unique facts and circumstances of the present case. (ii) Whether on the facts and circumstances of the case and in law, the Hon. CIT(A) is justified in holding that notice u/s 148 is not sustainable legally relying upon the order of Hon'ble Rajasthan High Court's order dated 19.03.2024 in D.B. Civil Writ Petition No. 18363/2019 and several other linked petitions wherein wrongly held that once there is incriminating material seized or requisitioned belonging or relatable to the person other than on whom search was conducted, Section....
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.... key persons of Ramesh Manihar Group, being Shri Ramesh Chand Maheshwari and Shri Manmohan Krishan Bagla were engaged as finance brokers for arranging cash loans between various borrowers and lenders, which were not reflected in the books of accounts and that the brokerage received for such unrecorded cash transactions was also not offered for taxation by the group. The assessee has advanced unaccounted loan through the Ramesh Manihar Group and also earned unaccounted interest thereon, which is required to be brought to tax. 5. The Assessing Officer (AO) after having recorded reasons in detail, finally, initiated reopening proceedings u/s 147 of the Act on the ground as under:- "Thus, Shri Gopal Prasad Gupta, mentioned in the ab....
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.... assessment within the meaning of provision of section 147 of the Act, 1961 for the assessment year 2016-17. Order u/s 148A(d) was passed on 30.07.2022 after obtaining the prior approval of the Pr. Commissioner of Income Tax (Central), Jaipur and notice u/s 148 was also issued on 30.07.2022. Statutory notices u/s 142(1) and 143(2) were issued to the assessee and the response received in compliance of that were duly considered by the AO and finally, additions were made as under:- 1. Addition u/s 69A of the Act on the ground that the assessee had shown unsecured loan of Rs. 8,60,28,741/- out of which the assessee and filed confirmations to the extent of Rs. 3,31,47,438/-. Therefore a sum of Rs. 5,28,81,303/-(8,60,28,741- 3,31,47,438)....
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...."23. The reasons supplied in case in hand for initiation of proceedings under Section 147/148 are based on the incriminating material and documents including Pen Drives seized during the search carried out of the Manihar Group and the statements recorded during proceedings. From the information received the AO noticed that the loan advanced and interest earned thereon were unaccounted. In other words the basis for initiation of Section 148 proceedings is the material seized relating to or belonging to the petitioner, during the search conducted of Manihar Group. 24. In the case where search or requisition is made, the AO under Section 153A mandatorily is required to issue notices to the assessee for filing of income tax return for ....
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....visions for assessment or reassessment under Sections 139, 147, 148, 149, 151 & 153. 28. The language of explanation 2 to new Section 148 is akin to Section 153A and Section 153C. Corollary being that after seizing of operational period of Section 153A to 153D, the cases being dealt thereunder were circumscribed in the scope of newly substituted Section 148. 29. The Department has not set up a case that for initiating proceedings under Section 148 it had material other than the material seized during the search of Manihar Group. The contention was that though the material with regard to unaccounted loan advanced by the petitioner was received, the earning of interest on unaccounted loan was derivation of the AO from the ma....
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....nnual information statement of non-disclosure of income of Rs. 150/-. The AO under Section 153A and 153C shall pass order dealing with income of Rs. 100+Rs. 200+Rs. 150, the total income being Rs. 450/-. In cases where there is no unearthing of undisclosed income of Rs. 200/-, the department can resort to proceeding under Section 147/148. 32. The argument that Section 153C can be invoked in case there is incriminating material for all the relevant preceding years and otherwise Section 148 is to be resorted to, is misplaced. On satisfaction of the twin condition for proceedings under Section 153C, the AO has to proceed in accordance with Section 153A. Notice is to be issued for filing of the returns for relevant preceding years and ....