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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
MR. JUSTICE AVNEESH JHINGAN, MR. JUSTICE ASHUTOSH KUMAR, JJ
Prateek Bulls And Bears Private Limited, – Appellant
Versus
Deputy Commissioner Of Income Tax – Respondent
Order :
AVNEESH JHINGAN, J :
1. This petition is filed seeking quashing of the notice dated 14.03.2022 issued under Section 148(b) of the Income Tax Act, 1961 (for short ‘the Act’) for the Assessment Year 2018-2019 and the order dated 31.03.2022 passed under Section 148A(d) of the Act.
Facts:
2. The brief facts are that the petitioner filed the return for the relevant assessment year declaring the income of Rs.2,39,47,140/-. A notice dated 14.03.2022 under Section 148A(b) of the Act was issued annexing the reason that in the assessment year 2018-19 there was a credit entry of Rs.4,50,00,000/- and debit entry of Rs.4,50,71,468/- in the bank account No.3042833. The petitioner in response dated 21.03.2022 stated that the petitioner has no bank account having the number mentioned in the notice. Further that the petitioner had a bank account with ICICI Bank, which was closed on 08.02.2010, the proof of closure of the bank account was enclosed. Order dated 31.03.2022 was passed holding that the objections are not tenable for the failure of ICICI Bank to respond to the notice issued on 25.03.2022 by the Assessing Officer (for brevity ‘AO’) under Section 133(6) of the Act.
Submissions:
3. Learne
The Assessing Officer must provide adequate opportunity and conduct thorough inquiries before issuing a notice under Section 148, ensuring compliance with statutory requirements.
Notices under Income Tax provisions must adhere to procedural requirements; failure to properly assess basis for reopening invalidates the notices.
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.....
Proper verification of information collected through sources, duty of the authority to objectively consider the assessee's reply, and the necessity to disclose specific details in the notice to enabl....
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.
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