Reassessment notices under the Income Tax Act are valid if no prior opinion was formed on the income in question, highlighting the independent jurisdiction of assessing authorities.

JUDGMENT

Manmohan, J. Present writ petitions have been filed challenging the reassessment notice dated 28th March, 2021 issued under Section 148 of the Income Tax Act, 1961 [for short `the Act'] and the assessment order dated 27th March, 2022 passed under Section 147 read with Section 144B of the Act for the Assessment Year 2017-18.

FACTS:

2. The relevant facts of the present cases are that the Petitioner filed his return of income for the Assessment Year 2017-2018 on 22nd July, 2017 showing a returned income of Rs.28,42,430/-. The case of the Petitioner was selected under limited scrutiny (computer aided scrutiny selection) by the respondent department and accordingly a notice dated 24th September, 2018 was issued under Section 143(2) of the Act by the Assessing Officer against the Petitioner raising queries regarding cash deposit made by the Petitioner during the demonetisation period.

3. An assessment order dated 26th December, 2019 was passed by the Assessing Officer under Section 143(3) of the Act for the concerned assessment year 2017-18 at an income of Rs.57,17,430/- making an addition of Rs.28,75,000/- to the returned income of the Petitioner under Section 69A of the Act on the ground that the Petitioner was not able to satisfactorily explain the source of the fund for the cash deposit of Rs.34,54,500/- made by him in his bank account held with the Corporation Bank during the demonetisation period.

4. Being aggrieved by the assessment order dated 26th December, 2019 the Petitioner preferred an Appeal which is currently pending adjudication before the CIT (A) at NFAC.

5. During the pendency of the appeal for the year under consideration before the NFAC, the respondent issued the impugned reassessment notice dated 28th March, 2021 under Section 148 of the Act seeking to reassess the income of the petitioner for the Assessment year 2017-2018 qua cash deposit of Rs.12,50,000/- made in the Punjab National bank. The Petitioner filed his return of income in response to the reassessment notice on 21st April, 2021 at the returned income of Rs.28,42,430/-. Subsequently, several notices under Section 143(2) of the Act and Section 142(1) of the Act were issued to the petitioner for seeking information regarding the source of another cash deposit of Rs.12,50,000/-. It is the Petitioner case that he had furnished a detailed reply dated 10th January, 2022 to the notices explaining that the cash deposits of Rs.12,50,000/- made in the joint accounts held by the Petitioner with his wife in Punjab National Bank and Bank of India were made out of the cash that was inherited by his wife upon death of her father.

6. The petitioner was subsequently issued show cause notices dated 15th March, 2022 and 25th March, 2022 and the impugned reassessment order dated 27th March, 2022 was passed under Section 147 read with Section 144B of the Act assessing the income of the Petitioner at Rs.69,67,430/- by making an addition of Rs.12,50,000/- on account of unexplained income.

7. Aggrieved by the impugned notice dated 28th March, 2021 issued under Section 148 of the Act, the Petitioner filed W.P.(C) 6034/2022 challenging the notice before this Court. However, the petitioner failed to get the said writ petition listed before this Court immediately. The petitioner subsequently filed W.P.(C) 6036/2022 impugning the assessment order dated 27th March, 2022 passed under Section 147 of the Act. Both the petitions were listed for the first time on 13th April, 2022.

SUBMISSIONS OF THE PETITIONER

8. Learned counsel for the petitioner stated that the original assessment was validly framed vide order dated 26th December, 2019 after true and full