Back
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Chetak Nandkumar Gandhi – Appellant
Versus
Income Tax Office – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Manish J. Shah for the petitioner and learned advocate Mr. Rutvij Patel for the respondent.
2. Rule returnable forthwith. Learned advocate Mr. Rutvij Patel for the respondent waives service of notice of rule.
3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 17.03.2023 issued under section 148A(b) of the INCOME TAX ACT , 1961 [for short ‘the Act’] as well as notice dated 31.03.2023 under section 148 of the Act and the order dated 31.03.2023 under section 148A(d) of the Act.
4. Brief facts of the case are that:
4.1 The petitioner is the son of late Ms. Mrudula Gandhi. A notice dated 17.03.2023 under section 148A(b) of the Act was issued in name of late Ms. Mrudula Gandhi to explain the source of credit amounting to Rs. 1,23,70,612/- appearing in her bank accounts for the Financial Year 2018-19 relevant to Assessment Year 2019-20.
4.2 On perusal of the show-cause notice under section 148A(b) of the Act, it appears that the respondent raised the issue regarding credit in the bank account of late mother of the petitioner on the ground that the same was not fully disc
Notices under Income Tax provisions must adhere to procedural requirements; failure to properly assess basis for reopening invalidates the notices.
The notice issued under Section 148A(b) of the Income Tax Act was invalid due to procedural errors, lacking necessary information on escaped income and failing to follow required inquiry protocols.
The main legal point established in the judgment is the significance of adhering to the procedure prescribed under Section 148A of the Income Tax Act, 1961 before initiating reassessment proceedings.....
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
Assessment under Income Tax requires concrete information indicating escapement of income, which was absent in this case, rendering notices invalid.
The requirement of prior approval of the specified authority under Section 148A(d) satisfies the condition for issuance of a notice under Section 148 of the Income Tax Act, 1961.
The Assessing Officer must provide adequate opportunity and conduct thorough inquiries before issuing a notice under Section 148, ensuring compliance with statutory requirements.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
