TaxTMI 
TaxTMI 
2025 (4) TMI 2131
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....in assuming jurisdiction u/s 263 which is bad in law in rejecting the objection that the assessee cannot challenge the Jurisdictional Validity of the order passed u/s 147 r.w.s 144B dated 26.03.2022 in the proceeding u/s 263 of the IT Act on the basis that explanation 2(a) to Section 203(1) supersede all other legal consideration. no appeal against said order filed and any other statutory instrument or medium not undertaken and no objection raised earlier. 3. That having regard to the facts and circumstances of the case, Ld. Pr. CIT has erred in law and on facts in assuming jurisdiction u/s 263 which is bad in law inter alia for this reason that the reassessment order passed u/s 147 r.w.s 144 r.w.s 1448 dated 26.03.2022 which is sought to be revised u/s 263 itself was invalid inter alia on various grounds as mentioned below and thus proceedings initiated u/s 263 against the invalid reassessment order is clearly bad in law, which were summarily rejected. a) That notice u/s 148 is time barred. b) The reason has been recorded on Incorrect facts as no loan has been received from Sh. Joginder Pal Gupta c) The reasons have been recorded on borrowed satisfaction d) Objection to r....
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.... The brief facts as per the order of the ld. Pr. CIT in para 1 and 2 are as under: The brief facts of the case are that as per information disseminated on 'Verification' module of Insight portal under CRIU/ VRU High Risk cases, statement of Sh. Joginder Pal Gupta was recorded on oath u/s 132(4) of the Act during search and seizure operation on 23.12.2019 and he admitted that he was an entry operator who controlled various shell companies and provided accommodation entries to beneficiaries. The assessee company was also one of the beneficiaries and it had received an amount of Rs. 3,65,00,000/-. Therefore, proceedings u/s 147 of the Act were initiated in this case and in response to this, the assessee company filed the return of income on 10.04.2021 by declaring an income of Rs. 5,39,040/-. Subsequently, assessment u/s 147 r.w.s. 144B on 26.03.2022 of the Act was completed by accepting the returned income. 2. On perusal of the assessment record, it has been found that the FAO has not even called for the bank statements of the assessee company in order to verify whether any amount was received in its bank account from the shell companies controlled by Sh. Joginder P....
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....ed was illegal and invalid due to following:- 1. Notice u/s 148 issued on 01.04.2021 is time barred for the above Assessment Year. Regarding the date of issue of notice, there is no date mentioned on ITBA portal when the notice was uploaded and column is left blank. The snapshot is as under: It is relevant to mention here that all other notices were uploaded with date. As per the mail received on the registered mail id the dt. 01.04.2021 as depicted below: Hence the notice were issued on 01.04.2021, which is time barred. Regarding date of issue, Reliance is placed on following judgments. (All-HC) 2022 ITL 734: (2022) 444 ITR 41: (2022) 325 CTR 659: (2022) 212 DTR 1: (2022) 286 ΤΑΧΜΑΝ 623 Daujee Abhushan Bhandar (P) Ltd. v. UOI & Ors. IN THE ALLAHABAD HIGH COURT "Thus, considering the provisions of section 282 and 282-A of the Act, 1961 and the provisions of section 13 of the Act, 2000 and meaning of the word 'issue' we find that firstly notice shall be signed by the assessing authority and then it has to be issued either in paper form or be communicated in electronic form by de....
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....etermine the date and time on which the emails were triggered by the ITBA system server as per the ITBA records and consider the same as the date of issuance." We refer to section 149 of the IT act for time limit for the issue of notice. Time limit for notice. 149. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of (i) an asset; (ii) Expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, Which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:) Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year be....
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....der passed prematurely and in a hasty manner by the Assessing Officer on 26.03.2022 suffers from violation of law as provided in Explanation 2(a) to Section 263(1) of the Act that enquires as mandated under the law were not carried out by the Assessing Officer in such manners as they "ought to have been carried out". In consequence, the enquiries into bank accounts and books of accounts of the assessee company and as well as its books of accounts need to be carried out fully and comprehensively to examine whether any amounts have been received/credited therein from the bank accounts of the shell companies controlled by Sh. Joginder Pal Gupta. These are directed to be carried out by the AO, failing which the earlier passed u/s 147 r.w.s. 144B of the Act would be held to be erroneous and prejudicial to the interests of Revenue as also provided in Explanation 2(a) to Section 263(1) of the Act. The arguments and position taken by the assessee that no loans or amounts of any nature have been received or stands credited in the name of Sh. Joginder Pal Gupta or any of his associate persons or group entities are an important material consideration that needs to be examine....
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....lidity of the underlying (original) proceedings, to undercut the legality of the instant revision proceedings u/s 263 of the Act. This self-serving position of the assessee stands exposed for its a priori unacceptability per the accepted principles of law and statute, and is rejected without prejudice to the veracity of the factual matrix applicable in this case. In sum, there is presently no proven unlawfulness in the notice issued u/s 148 of the Act, on the ground of its issue being statutorily barred in time or for other reasons, nor is there any evidence placed on record, other than vague prognoses and unfounded threats catapulted back from the future, about the supposed invalidity and illegality of the proceedings or order passed u/s 147 r.w.s. 144B of the Act. These arguments are rejected as inapplicable and exercises in superfluous verbosity sans any foundation at this time. 5. feeling aggrieved by the order passed by the Ld. PCIT the assessee is in appeal before us for the grounds mentioned hereinabove. 6. The contention of the assessee before us, that the notice issued under section 148 was barred by limitation provided for and therefore the revisional juris....
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....ntly, notice under Section 263 will be invalid. Therefore, we are of the view that it is necessary to find out whether notice under Section 148 was issued on 31.03.2021 before 12 o'clock in the night or not. The Id. CIT-DR pointed out that assessee should be directed to download the copy of that notice and place it before the Bench for appreciation. It was submitted that once a notice is being generated on the Portal it will left the Portal towards the assessee and evidence of issuance of notice will be available. Our basic aim is to find out whether notice was issued within the time limit or not. Therefore, we direct both the sides to place every details in their possession so that we can resolve this dispute. The AO is directed to file a report alongwith annexure when notice left his control and assessee is also directed to download copy of that notice and place it on the record. Copy of this order sheet be supplied to both the parties for compliance. Hearing is adjourned to 19.03.2025. 8. The Ld. AR has also filed a communication dated 30.01.2025, wherein it was submitted that, as per the records available on the ITBA Portal, the notice under Section 148 was uploaded on 0....
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....024 ITL 949 : (2024) 298 Taxman 673 PRINCIPAL COMMISSIONER OF INCOME TAX - 5, KOLKATA V. SHRI SANJAY MEHTA * M/s Prince Polutry Farm, C/o Shri Nitin Bhasin, Advovcate V. The PR. CIT, Panchkula 2023 ITL 4604 11. The learned Departmental Representative (DR) supported the order passed by the learned PCIT and submitted that the assessee did not raise any objection at the time of issuance of notice under Section 148 or at the stage of passing the assessment order by the Assessing Officer pursuant to the reopening dated 31.03.2022. It was contended that the assessee is now raising a technical objection for the first time, which is not tenable in the eyes of law. The learned DR further submitted that the matter ought to be examined on merits in light of the principles laid down by the Hon'ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT [2018] 402 ITR 640 (SC). 12. We have heard the rival contention of the parties and perused the material available on the record. 13. Before adjudicating the issue at hand, it is pertinent to reproduce the relevant statutory provisions of the Income Tax Act, 1961, and the Income Tax Rules, 1962, which govern the issuance and ....
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....hich such communication may be delivered or transmitted. Rule 127 - Service of Notice, Summons, Requisition, Order, and Other Communication (1) For the purposes of sub-section (2) of section 282, the address of the assessee for communication shall be- (a) the address available in the PAN database of the assessee; or (b) the address available in the return of income furnished by the assessee for the relevant assessment year; or (c) the address available in the last income-tax return furnished; or (d) the address available in the records of the Assessing Officer; or (e) the email address available in the electronic filing account registered by the assessee. (2) The communication shall be deemed to have been delivered- (a) if sent by post-at the time at which it would be delivered in the ordinary course of post; (b) if delivered electronically-at the time of sending the electronic record. 14. Upon a conjoint reading of Sections 148, 149, and 282 of the Income Tax Act, 1961, along with Rule 127 of the Income Tax Rules, 1962, it becomes abundantly clear that a communication shall be deemed to be....
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....ection 263 cannot be sustained in law. 20. Lastly in this regard, we may also refer to the decision of the Coordinate Bench referred by the Ld. AR in case of Parveen Kumar Mittal Vs. The Pr. CIT in ITA No 22/Chd/2021 dt. 02/11/2021 wherein the coordinate Bench has held as under:- 14. In the case of M/s Westlife Development Ltd.(supra) the ITAT has, after referring to various case laws held that the legality of the proceedings can be agitated in a subsequent proceeding or even in a collateral proceeding or execution proceeding also. The relevant findings of the ITAT are as under: "7. We have heard both the parties on this issue and also gone through the orders passed by the lower authorities as well as the judgments relied upon before us. In our view, we need to decide following issues, before we go into any other issues or merits of the impugned order: 1. Whether the assessee can challenge the validity of an assessment order during the appellate proceedings pertaining to examination of validity of order passed u/s 263? 2. Whether the impugned assessment order passed u/s 143(3) dated 24-10-2013 was valid in the eyes of law or a nullity as has b....
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.... already become final and that cannot be sought to be disturbed by the assessee. But, the issue that arises here is that if the original assessment order is illegal in terms of its jurisdiction or if the same is null & void in the eyes of law on any jurisdictional grounds, then, whether it can give rise to initiation of further proceedings and whether such subsequent proceedings would be valid under the law as contained in Income Tax Act? It has been vehemently argued before us that the subsequent proceedings (i.e. collateral proceedings) derive strength only from the order passed in the original proceedings (i.e. primary proceedings). Thus, if order passed in the original proceedings is itself illegal, then that cannot give rise to valid revision proceedings. Therefore, as per law, the validity of the order passed in the primary (original) proceedings should be allowed to be examined even at the subsequent stages, only for the limited purpose of examining whether the collateral (subsequent) proceedings have been initiated on a valid legal platform or not and for examining the validity of assumption of jurisdiction to initiate the collateral proceedings. If it is not so allowed, th....
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.... Kumar Mehta vs Gobind Ram Bohra, (1990) 1 SCC 193, wherein an issue arose whether a decree can be challenged at the stage of execution and whether a decree which remained uncontested operates as res-judicata qua the parties affected by it. Hon'ble apex court, taking support from aforesaid judgment, observed as under: "In the light of this position in law the question for determination is whether the impugned decree of the Civil Court can be assailed by the appellant in execution. It is already held that it is the Controller under the Act that has exclusive jurisdiction to order ejectment of a tenant from a building in the urban area leased out by the landlord. Thereby the Civil Court inherently lacks jurisdiction to entertain the suit and pass a decree of ejectment. Therefore, though the decree was passed and the jurisdiction of the Court was gone into in issue Nos. 4 and 5 at the ex-parte trial, the decree there-under is a nullity, and does not bind the appellant. Therefore, it does not operate as a res judicata. The Courts below have committed grave error of law in holding that the decree in the suit operated as res judicata and the appellant cannot raise the same p....
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.... officer the assessee specifically raised the point of jurisdiction to reopen the assessment, contending that the notice of reopening was prompted by a mere change of opinion. The AO rejected plea of the assessee but the AAC accepted this ground and also held the reassessment to be bad in law on jurisdictional ground. Against the order of the AAC the Revenue went in appeal before the Tribunal and specifically raised the plea that the question of jurisdiction to reopen the assessment having been expressly given up by the assessee in the appeal against the reassessment order in the first round, the assessee was debarred from raising that point again before the AAC and the AAC was equally wrong in permitting the assessee to raise that point which had become final in the first round and in adjudicating upon the same. The plea of the Revenue impressed the Tribunal which took the view that after its earlier order in the first round of proceedings the matter attained finality with regard to the point of jurisdiction which was given up before the AAC and not agitated further and that in the remand proceedings what was open before the Assessing Officer was only the question whether the addi....
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....s KIT 105 lTD 33 (Del), wherein a similar issue had arisen. In this case, the issue raised before the bench was whether it is open to the assessee, not having appealed against the reassessment order, to set up or canvass its correctness in collateral proceedings taken for rectification thereof u/s 154. The bench minutely analysed law in this regard and applying the principle of 'coram non judice' and following aforesaid judgments of the supreme court, it was held that if an assessee seeks to challenge the reassessment proceedings as being without jurisdiction, when action for rectification is sought to be taken on the assumption of the validity of the reassessment order, then the assessee has to step in and protect its interests and the liberty to question even the validity of the reassessment proceedings ought to be given to it......." (emphasis supplied) 8.8. Similar view was taken in another decision of the Tribunal in the case of Dhiraj Suri vs ACIT 98 lTD 87 (Del). In the said case, appeal was filed by the assessee before the Tribunal against the levy of penalty. In the appeal challenging the penalty order, the assessee challenged the validity of block assessm....
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....e contents of the reasons recorded for reopening the case of the assessee placed before us at Paper Book page No.15. We find merit in the contention of Ld.Counsel for the assessee that the reasons recorded do not demonstrate sufficient information in the possession of the AO to lead to the formation of belief of escapement of income. In fact the information available with the AO could not have lead to the formation of belief of escapement of any income at all. 18. As per the reasons recorded by the AO, the belief of escapement of income is based on the information of cash deposits in the bank account of the assessee remaining unexplained on account of no return of income of the assessee available in the system of the department and no explanation regarding the source of the same furnished by the assessee to ITO, Ward-4 (para 7 of the reasons reproduced above). 19. As it turns out the only valid information in the possession of the AO, while recording reasons for escapement of income, was the fact of cash deposits in the bank account of the assessee amounting to Rs. 4.17 crores and no other information. The non availability of return of the assessee in the income t....
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....lief of escapement of income. The cash deposit may be justified by the facts and figures revealed in the income tax return filed by the assessee. In any case there has to be more information in the possession of the AO to form belief that the cash deposits represent assesses own escaped income. In the present case we find that the AO has no categorical information in his possession either regarding the fact of return having been filed by the assessee nor any other information to the effect that the source of the cash deposits was unexplained. No inquiries were independently conducted by the AO regarding the source of cash deposits, which would have surely assisted in the formation of belief of escapement of income with regard to the same. 22. The reasons recorded therefore do not justify the assumption of jurisdiction by the AO to reopen the case of the assessee u/s 147 of the Act. The order passed u/s 147 of the Act therefore is clearly not a valid order in the eyes of law. 23. The collateral proceedings on the said order, u/s 263 of the Act, are therefore, we agree, not sustainable in law. The order passed by the Ld.PCIT u/s 263 of the Act is accordingl....
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....as W Document 2 - O W V 3 ¢ 0 O W 5 G . € ৳ . [ITBA]Notice under section 148 of the Income Tax Act, 1961 D How x * 0 O CHANCHLARH ITOS.50incometar ger.in .... ------ 0 - # Die NOG PACFIC FRALEASE LID Firmse Ini atackod De Nsfer u/9 885 fui PARAAACI297HE 006 AY 2014-15 Posse de ptul PAN a . frtre comespuntinoes - ------------------ - This sonouncafen may be bostad es conylot of the moglonants of fresas lan Rodas 127 and 827A - Sope can may be sons saperey d on stenty digely signed - Firma qate yao PAN in at cemo/tk:las · treore fer Dapesman does not vosk aty tupayes ballpreten de vous some possodet, details of Att creen cards ont. Tangogens ann alsand pan 90 get on oh nonvin in the best of emails One attachment . Statend by Gmal @ P Type Mie to search M Gmail 4 Congee - o O D Bepertard F + brits - Trash Categorles Labels Personel Q O A Activate Windows - @ O Document 3 Notice/ Communication Reference ID 100033657678 To [email protected] Date From [email protected] CC Subject WITB....
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....05 Kindly refer to the subject cited above. Your RTI application dated 15,01.2025 was received in this office on 15.01.2025. The applicant has sought the following information for A.Y. 2014-15 as per column Il for which the information pertaining to this office is given in the next column Ill : S. No. Column II Column III 1. Confirm that notice u/s 148 dt. 31.03.2021 in the case of assessee was issued through ITBA email software system As per records available, notice u/s 148 in the case of the applicant for A.Y. 2014-15 was issued through ITBA 2. 3. Date & time of issue of notice u/s 148 dt. 31.03.2021 as per ITBA Server i.e. triggering Email and section 13 of the information technology Act 2000 Notice u/s 148 dt. 31.03.2021 was ofissued on 31.03.2021. Screenshot of ITBA attached to the reply as annexure A Screenshot of ITBA Screen of the assessee- Register detail regarding dispatch of notice u/s 148 which include detail of date & time of email sent and details of date & time of email delivered TARTARE: RITE TS RING XXXCI217EE_2014_ATTACHMENT_100000240201.p01 Screenshot of ITBA Screen with respect to dispatch of notice u/s 148 which include detail of date & time of em....
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....t already digitally signed. Please quote your PAN in all communications. Income Tax Department does not seek any taxpayer information like user name, password, details of ATM, credit cards, etc. Taxpayers are advised not to part with such information on the basis of emails. 56451362_71103746_AAACI2176E_Notice us 148_1032094794(1)_31032021.pdf & Download From CHANDIGARH [email protected] Subject UITBA)Notice under section 148 of the Income Tax Act, 1961 Document 10 à¤à¤¾à¤°à¤¤ सरकार@Govt. of India आयकर विà¤à¤¾à¤— Income Tax Department कारà¥à¤¯à¤¾à¤²à¤¯ आयकर आयà¥à¤•à¥à¤¤ (DR) (आई०टी०à¤à¥¦à¤Ÿà¥€à¥¦), आयकर à¤à¤µà¤¨, सेकà¥à¤Ÿà¤° 17-ई, चणà¥à¤¡à¥€à¤—ढ़-160017 O/o the Commissioner of Income Tax (DR)-2 (ITAT), AayakarBhawan, Sector- 17-E, Chandigarh F. No.CIT(DR)-2/ITAT/Chd/2024-25 679 17.03.2025 18 To The Assistant Registrar, Income Tax Appellate....
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.... u/s 148 of the IT Act, 1961 dated 31.03.2021, it is seen that on the (the ITO, Ward-5(5), Chandigarh) on March 31, 2021 at 6:53 PM. 05. that the same has been digitally signed by Many that the impugned notice u/s 148 of the IT Act dated 31.03.2021 has been generated suscesfully on 31.03.2021. The above is submitted for kind perusal. (D) ATBA~Assessment Welcome DAVINDER PAL SINGH, ITO WARD SSL, CHANOKGARHY , A Hen RETTETTETT Menu 1 I Workfost | MIS Reports 1 Help 1 FAQS View/Download-Order/Letter/Notice Davindez Pal Singh COME TAN DEPARTMENT To, INDO PACIFIC FINLEASE LTD .,SCO 98-99 , SECTOR 34 SUB CITY CENTER CHANDIGARH 160002 , Chandigarh (UT) India PAN AY: Dated: DIN & Notice No : AAACI2176E 2014-15 31/03/2021 ITBA/AST/S/148/2020-21/1032094794(1) Notice Under Section 148 Of The Income Tax Act, 1961 Sir/ Madam/ M/s, Whereas I have reasons to believe that your Income chargeable to Tax for the Assessment Year 2014-15 has escaped Assessment-within the meaning of section 147 of the Income Tax Act, 1961. I, therefore, propose to assess/ re-assess the income/ loss for the said Assessment Year and I hereby require you to deliver to me within 30....