Point of Law : Section 148 of the Act, 1961 suffers from any illegality nor the impugned order rejecting the objection of the petitioner suffers from any infirmity, which, under the circumstances, cannot be interfered with.

JUDGMENT :

1. Heard Shri R.R. Agarwal, learned Senior Advocate assisted by Shri Mahendra Pratap and Shri Anurag Yadav, learned counsel for the petitioner, Shri Krishna Agarwal, learned counsel for the respondent nos.1 and 2/Income Tax Department and Shri Gopal Verma, learned counsel for the respondent no.3.

2. This writ petition has been filed praying for the following reliefs:-

"(i) Issue a writ, order or direction in the nature of certiorari quashing the order dated 03.02.2022 passed by the National Faceless Assessment Centre Delhi respondent no.2 rejecting the objection of the petitioner to the reasons recorded for re-opening of the assessment for A.Y. 2016-17 (Annexure-5 to the writ petition).

(ii) Issue a writ, order or direction in the nature of certiorari quashing the notice issued under section 148 of the Income Tax Act for A.Y. 2016-17 dated 32.03.2021 issued by the Income Tax Officer (1), Ward 2(2)(1) Ghaziabad, respondent no.1 (Annexure-2 to the writ petition)."

3. Learned Senior Advocate for the petitioner submits that the impugned notice dated 30.03.2021 under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act, 1961') has been issued to the petitioner by the respondent no.1 on the basis of certain information received on account of the search conducted in the premises of M/s Celebrations City Projects (P) Ltd. Therefore, at best, the proceedings against the petitioner-assessee may be initiated in accordance with the provisions of Section 153C of the Act, 1961 which starts with non-obstante clause. He, therefore, submits that the impugned notice under Section 148 of the Act, 1961 and the impugned order dated 03.02.2022 rejecting the objection of the petitioner, are wholly unsustainable and deserve to be quashed and the entire proceeding under Section 148 is without jurisdiction.

4. Learned counsel for the respondents have supported the impugned notice and the order.

5. We have carefully considered the submissions of learned counsels for the parties and perused the records of the writ petition.

6. Reason supplied by the assessing authority to the petitioner for initiating proceedings under Section 147/148 of the Act, 1961, is reproduced below:-

"It was informed by DDIT (Inv.)-1(3), Ghaziabad vide letter dated 26.03.2021 dated during the enquiry proceedings, it was found that that assessee has made cash amount of Rs. 1,18,84,000/- for purchase of units/shops/space etc. in Red Mall, Ghaziabad to M/s Celebration City Projects Pvt Ltd. during the F.Y. 2015-16.

On perusal of the record it is seen that the assessee has filed ITR for A.Y. 2016-17 on 28.07.2016 declaring income of Rs.7,32,670/-. As per record the case has not been assessed u/s 143(3) of the Income Tax Act, 1961.

I have perused the record in light of the above information and through independent verification of return of the assessee with the perusal of the statement recorded on oath came to independent conclusion that the assessee has made huge cash of Rs.1,18,84,000/- for purchase of units/shop etc, in Red Mall to M/s Celebration City Projects Pvt Ltd. during the F.Y. 2015-16 1.e. A.Y. 2016-17. Hence, there is reason to believe that there is escapement of income from the returned income of the assessee. I have reason to believe that there is escapement of more than Rs. 1,18,84,000/- and further additional income and any other income which can come in the the knowledge subsequently in the course of proceedings u/s 147(b), therefore the issue of notice u/s 148 of the income tax act, 1961 is necessary in this case. Hence, the case of Smit Pushpa Yadav is being proposed for approval under the provision of section 151(1) of the I.T. Act, 1961."

(emphasis supplied)

7. While rejecting the objection of the petitioner by the impugned order dated 03.02.2022, the respondent no.1 has observed in paragraphs 2, 5.2.2 and 5.3.2. as under:-

"2. In the case of the assessee, information has been received from the DDIT (Inv)-(1)(3) by letter dated 26/3/2021 that