* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 12 March 2024 Judgment pronounced on: 01 April 2024 + W.P.(C) 7808/2023 MAHABIR SINGH JOON ..... Petitioner Through: Mr. Vineet Garg, Adv.

versus THE INCOME TAX OFFICER & ANR. .…Respondents Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar and Mr. Rishabh Nangia, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON’BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

J U D G M E N T

PURUSHAINDRA KUMAR KAURAV, J.

1. The petitioner in the instant writ petition is essentially aggrieved by an order dated 27 March 2023 passed by the Revenue under Section 148A(d) of the Income Tax Act, 1961 ["Act"]. He also challenges consequential initiation of assessment proceedings relevant to Assessment Year ["AY"] 2016-17.

Signature Not Verified

2. The challenge is laid on the foundation that the show cause notice issued under Section 148A(b) of the Act was not served upon the petitioner. According to the petitioner, in the absence of any service of the show cause notice, no reply could be filed and therefore, the impugned order under Section 148(A)(d) of the Act is liable to be set aside, as it stood against the principles of natural justice.

3. The facts, as borne out from the petition, indicate that the petitioner is an individual who claims to be an agriculturist and had not filed any income tax return for the AY 2016-17 on the pretext that income earned from agriculture is not chargeable to tax.

4. On 15 March 2023, notice under Section 148A(b) of the Act is stated to have been issued to the petitioner asserting therein that, on a perusal of the information as reported on Insight Portal of the Revenue, during financial year 2015-16 (relevant AY 2016-17), the petitioner had entered into a transaction of cash deposit amounting to INR 53,55,000/- in his savings account. It is argued by the petitioner that the aforesaid notice was never served upon him.

5. Since there was no reply to the said show cause notice, an order under Section 148A(d) of the Act came to be passed on 27 March 2023. Simultaneously, notice under Section 148A of the Act was also issued on the even date. The following recitals have been made in the order dated 27 March 2023:-

"Order under clause (d) of section 148A of the Income-tax Act.1961 Signature Not Verified

1. Background The assessee is an individual. The assessee has not filed ITR for AY

2016-17.

2. Information received

2.1 In this case information has been received through Insight Portal of the Income Tax Department under NMS/RMS category that during the AY 2016-17 the assessee has entered into following financial transactions:

3. Sarva Haryana Gramin Bank, Rohtak which in response to it submitted online reply by attaching bank statement of the assessee. Further, show cause notice u/s 148A(b) of the Income Tax Act, 1961, dated - 15.03.2023 was issued to the assessee electronically through ITBA Portal providing him/her the information/material mentioned in para 2.1 above. The notice has been delivered at the mail mentioned in the PAN database and also notice has been sent through Speed Post with tracking 10 No. ED899170251IN. The compliance date of the notice u/s 148A(b) was 22.03.2023.

4. In response to the above notice assessee did not filed any response or reply

5. Findings/Comments of AO It is observed from the bank statement of the assessee has deposited cash amounting to Rs. 53,55,000/- which is un-explained money.

Hence, it requires to be verified and examined.

6. Further, the requirements to initiate proceedings u/s 147 of the Income Tax Act, 1961 as provided by sections 148A r.w.s. 148 of the Act have been duly followed and due prior approval of the Signature Not Verified specified authority as provided u/s 151 of the Act has been taken during various steps of the procedure entailed in section 148A of the Act.

7. In view of the