Jurisdiction for tax assessments can validly be initiated under Section 148, regardless of related procedures under Section 153C, particularly when no incriminating evidence is found.

COMMON ORDER

In these two writ petitions, the petitioners had challenged the respective impugned notices issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2017-18 both dated 30.03.2021 and the assessment orders passed under Section 147 of the Income Tax Act against both the petitioners.

2.The petitioners, who are daughter-in-law and mother-in-law, are before this Court. The respective impugned orders were proceeded by respondents under Section 148 of the Income Tax Act, pursuant to which, the respective petitioners filed their return of income. The petitions were furnished with the reasons for issuance of notices under Section 148 of the Income Tax Act, 1961 vide notice under 143(2) dated 31.11.2021.

3.The reasons for re-opening the assessment for the respective petitioners are identical and were furnished to the petitioners on 03.11.2021 vide notice under 143 (2) dated 31.11.2021. The reasons communicated for issuance of notices under Section 148 of the Income Tax Act to the respective petitioners vide notice under 143 (2) dated 31.11.2021 read as under:

In W.P.No.14968 of 2022 In W.P.No.15015 of 2022 “ANNEXURE” “ANNEXURE”

A search and seizure A search and seizure action was conducted on a action was conducted on a syndicate of persons led by syndicate of persons led by Shri Naresh Jain on Shri Naresh Jain on 19.03.2019. During the 19.03.2019. During the course of search and seizure course of search and action, several incriminating seizure action, several documents, communications incriminating documents, and digital data has been communications and found, which led to unearth digital data has been the operations of the found, which led to syndicate, establishing unearth the operations of clearly the modus operandi the syndicate, establishing of providing Bogus Long clearly the modus operandi term capital gain (LTCG) / of providing Bogus Long Loss. Shri Naresh Jain was term capital gain (LTCG) / discovered to be operating Loss. Shri Naresh Jain with his several associates to was discovered to be rig the stock market and to operating with his several provide accommodation associates to rig the stock entries (in the form of bogus market and to provide LTCG, bogus short term accommodation entries (in loss/gain) to various the form of bogus LTCG, beneficiaries who intended to bogus short term loss/gain) bring their unaccounted to various beneficiaries income into their books of who intended to bring their account without paying taxes. unaccounted income into Cash was deposited in their books of account various dummy bank without paying taxes. accounts and then layered Cash was deposited in through several pass-through various dummy bank bank accounts and then accounts and then layered would reach the bank through several pass- accounts linked to dummy through bank accounts and Trading accounts. The then would reach the bank assessee is also a beneficiary accounts linked to dummy of the same. As per Trading accounts. The information available with assessee is also a the department, an amount beneficiary of the same. of Rs.53,77,000/- has As per information escaped assessment in this available with the case. department, an amount of Rs.54,49,000/- has escaped assessment in this case.

4.After the reasons were furnished to the respective petitioners, they were issued with Show Cause Notices both dated 23.03.2022, which have ultimately culminated in the impugned Assessment Orders both dated 31.03.2022.

5.The respective petitioners have purportedly purchased shares of