TaxTMI 
TaxTMI 
2026 (7) TMI 436
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....er to quash and set aide the impugned notice dated 29.03.2019 under Section 148 of the Act along with the preliminary order dated 09.11.2019. 3. As recorded in the order dated 24.06.2026, on the earlier occasion the matter was fully argued and it was kept for taking further instructions, whether the petitioner would like to withdraw the writ petition or not. Today, learned advocate Mr. Darshan Patel upon instructions has submitted that the petitioner would like to invite a reasoned order. FACTS OF THE CASE 4. The petitioner is an HUF being regularly assessed to tax by the Income Tax Department at Vadodara. The petitioner filed the wealth tax return for the Assessment Year (AY) 2012-13, along with computation statement. The petitioner received a notice under Section 148 of the Act on 29.03.2019. The respondent issued a letter dated 07.05.2019 providing the reasons recorded for reopening of Assessment under Section 147 of the Act. The petitioner filed his objections to the reasons recorded for reopening the assessment for A.Y. 2012-13 on 09.05.2019. On 27.05.2019, the petitioner filed a letter addressed to the respondent requesting him to dispose of the objections. The respo....
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....hallenging the notice dated 29.03.2019 issued under Section 148 of the Act, as well as the order dated 09.11.2019 disposing of the objections raised by the petitioner against the reopening, does not deserve to be entertained. It is submitted that the petitioner has failed to demonstrate any violation of a legal or statutory right capable of being enforced in exercise of the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India. 6.1 It is submitted that on the basis of the information available in the Individual Transaction Statement (ITS) on the ITD system, the Assessing Officer noticed that the petitioner had made an investment of Rs. 2,22,07,564/-, plus stamp duty, registration charges and other incidental expenses, towards the purchase of an immovable property. It is submitted that out of the aforesaid amount, a sum of Rs. 1,02,07,564/- was paid in cash. It is submitted that neither the investment in the said property nor the source of the substantial cash payment was disclosed by the petitioner in the return of income for AY 2012- 13. 6.2 On the basis of the aforesaid information, the Assessing Officer formed a belief that income chargeab....
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....that the investment made in property is far away from the income disclosed. In the present case, the assessee had paid Rs. 1,02,07,564/- in cash for purchase of the property in dispute. Therefore, the reassessment proceedings to verify the genuineness and source of the investment are necessary. Therefore, the impugned notice cannot be said to be arbitrary, illegal or without jurisdiction. 7. Reliance is also placed on the decision of this Court in the case of Hemjay Construction Co(P.)Ltd. vs. Income Tax Officer, (2019) 419 ITR 39. 8. It is further asserted that since the Notice under Section 148 of the Act was issued after four years from the end of the relevant assessment year, the requisite sanction under Section 151 of the Act was duly obtained from the Principal Commissioner of Income Tax, Vadodara-I, vide communication dated 27.03.2019, after due satisfaction was recorded on the reasons made by the Assessing Officer. It is, therefore, submitted that Explanation 2(b) to Section 147 of the Act, squarely applies to the facts of the present case, as the Assessment Year under consideration is deemed to be an undisclosed income in other words, an income chargeable to tax had ....
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....pal CIT Vadodara, vide communication dated 27.05.2019 for issuance of Notice under Section 148 of the Act. In order to verify that whether the Principal CIT has actually given accordance action the form recording reasons has been forwarded to us and the same is taken on record. 11. At this stage, we may refer to the provision of Section 147 of the Act which reads thus:- "If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may subject to the provisions of Section 148 to 153, asseesss or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of proceedings under this Section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereinafter in this Section and in Sections 148 to 153 referred to as the relevant assessment year):" **** "Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely : (b) w....