JUDGMENT :

DHIRAJ SINGH THAKUR, J.

1. The Petitioner challenges the notice under Section 148 of the Income Tax Act, 1961 (“the Act”) dated 26 March 2022 and notice dated 08th March 2022 under Section 148A(b) of the Act as also the Order passed in terms of Section 148A(d) of the Act.

2. Briefly stated the material facts are as under :

The Petitioner fled his return as an individual for the assessment year 2018-19 under Section 139(1) of the Act. The return was processed under Section 143(1).

3. Subsequently, a notice under Section 148A(b) of the Act dated 8 March 2022 was issued by Respondent No.1 suggesting that income liable to tax for the assessment year 2018-19 had escaped assessment and called upon the Petitioner to show cause as to why notice under Section 148 be not issued. The basis for reopening was the information, which reads as under :

“1. In your case information has been received from the credible sources that a Search/Survey Action u/s 132 of the I.T. Act was carried out on 14.02.2019 on Antariksh Group. It is seen that you have purchased warehouse from BGR Construction LLP of Rs.70,00,000/- as per sale list seized impounded during the course of search. This amount includes sale consideration of land and construction cost and the on-money received by BGR Construction LLP. As per the information, it is observed that the payments made to M/s BGR Construction LLP are not accounted for in its regular books of accounts. The Cash payment on account of on-money of Rs. 70,00,000/- was not accounted in its books of account which is evident and the same is received in cash by the M/s BGR Construction LLP. Thus, the source of cash paid by you of Rs.70,00,000/- to BGR remains unexplained.

2. As the above information has been received from the credible sources, and this office is contemplating proceedings u/s 148 of the Income Tax Act, 1961 in your case, you are required to submit your explanation alongwith appropriate documentary evidences and reconcile the above information with the ITR fled by you, if any. In case, no ITR has been fled by you, you may submit the reconciliation of the above information with your book of accounts or computation of total income. Also, this may be treated as show cause notice u/s 148A(b) of the Income Tax Act, 1961 and final opportunity to submit the details. In absence of any submission or details from your side with respect to the above, it shall be presumed that you nothing to say in the matter and the same will be dealt as per the provisions of the Income Tax Act, 1961.”

4. This show cause notice was replied by a communication dated 14 March 2022, wherein the Petitioner totally denied that there was any transaction with BGR Construction LLP and that no warehouse had been booked or payment made to the said entity. The Petitioner also denied any ‘on-money cash transaction’ with the said entity and therefore, demanded that the proceedings initiated under Section 147 of the Act be dropped.

5. On 21 March 2022, the assessing officer issued a clarification in regard to the notice under Section 148A(b), this time, stating therein that the Petitioner had also executed a conveyance deed with Meet Spaces LLP and, therefore, the assessing officer required the Petitioner to furnish payment details regarding this deed also. No response was fled by the Petitioner to this communication dated 21 March 2022 and finally, the assessing officer passed the Order under Section 148A(d) on 25 March 2022, stated to be with the prior approval of the Principal Commissioner of Income Tax, Thane.

In the Order under Section 148A(d), for the purpose of issuance of the notice under Section 148 of the Act, the assessing officer proceeds to record its satisfaction, firstly, that cash payments had been made by the assessee to BGR Construction LLP as had been confirmed by the transferee of the said entity in the statement recorded during the survey action and, secondly, that the assessee had entered into a conveyance deed as a purcha