The court upheld the authority of the Assessing Officer to reassess income under amended provisions of the Income Tax Act, reinforcing that objections can be addressed during reassessment proceedings, not at this preliminary stage.

JUDGMENT

Heard Sri Sharad Tandon, learned counsel for the petitioner, Sri Gaurav Mahajan and Sri N. C. Gupta, learned counsel for the Revenue.

2. Challenge in this writ petition is to the impugned order dated 25.05.2023 passed by the Assessing Officer, Income Tax Department/Respondent No.4 under Section 147 read with Section 144B of the INCOME TAX ACT , 1961 whereby and whereby a sum of Rs.1,20,59,813/- has been assessed as annual income for the Assessment Year 2015-16 and a demand of Rs.73,12,082/- towards tax has been raised against the petitioner. A challenge to the consequential notice under Section 148 of the INCOME TAX ACT , 1961 dated 26.07.2022 has also been laid.

3. It is the case of the petitioner that he electronically filed his return for the Assessment Year 2015-16 on 01.12.2015 declaring income of Rs.12,69,380/- The case of the petitioner was taken up for scrutiny under Section 143(3) of the Act and in the course of the assessment proceedings notices under Section 143(2) and 142(1) of the Act were issued. The petitioners filed his replied to the notices and after due examination of the same the income was fully assessed and accepted at returned income vide assessment order dated 18.01.2017. It is further contended that the INCOME TAX ACT , 1961 was amended vide the Finance Act, 2021 w.e.f. 01.04.2021 and the provisions of reassessment i.e. Sections 147 , 148, 149, 151, 151A etc. were amended and Section 148 A was inserted as a prerequisite for the notice of the Act (unamended). Meanwhile, such notices under Section 148 of the Act (Unamended) were put to challenge before various High Courts and such notices were quashed. However, the Apex Court in the case of Union of India v. Ashish Agarwal reported in 2022 (444) ITRI vide its judgment dated 04.05.222 inter-alia held the notices issued under the unamended Section 148 of the Act shall be deemed to have been issued under Section 148 A of the Act. The Respondent No.3 in compliance of the decision of the Apex Court dated 04.052022 issued notices on 24.05.202 and 12.07.2022 with reference to Section 148 A(b). The petitioner filed detailed reply on 03.06.2022 and 17.07,2922. The Assessing Officer/Respondent No.3 passed the order dated 25.05.2022 under 148A(d) and in consequence thereof the notice dated 22.07.2022 under Section 148 of the INCOME TAX ACT .

4. The petitioner in response to the notice under Section 148 filed the return of income on 20.08.2022 declaring total income of Rs.12,69,380/- Thereafter, the Respondent No.4 issued the intimation to the assessee for completion of the assessment under Section 144B and Respondent No.4 has issued various notices under Section 142(1) of the Act lastly on 10.04.2023 which were duly replied by the petitioner annexing all the documents i.e. copy of assessment order under Section 143(1) contract note of purchase and sale. The Respondent No.4 in continuation of the proceedings issued show cause notice dated 07.05.2023 to show cause as to why proposed variation should not be made which notice was duly replied by the petitioner vide reply dated 12.05.2023. The Respondent No.4 thereafter has passed the impugned order dated 25.05.2023 under Section 147 read with Section 144B of the INCOME TAX ACT , 1961. The notice of demand has been issued accordingly.

5. On the strength of the above facts, learned counsel for the petitioner has argued that the case of the petitioner is squarely covered by the first proviso to Section 147 of the Act as it stood prior to the amendment by the Finance Act, 2021 which provides that where assessment has already been co