April 2023
Reassessment — Notice — Validity — Transactions not disclosed in initial notice under section 148A(b) considered in order under section 148A(d) for issue of notice of reassessment — Department cannot travel beyond initial notice — Order under section 148A(d) and consequent notice under section 148 set aside.
By K. B. Bhujle, Advocate
7 Prakash Krishnavtar Bhardwaj vs. ITO
[2023] 451 ITR 424 (Chhattisgarh)
Date of order: 1st December, 2022
Sections 147, 148, 148A(b) and 148A(d) of ITA 1961
Reassessment — Notice — Validity — Transactions not disclosed in initial notice under section 148A(b) considered in order under section 148A(d) for issue of notice of reassessment — Department cannot travel beyond initial notice — Order under section 148A(d) and consequent notice under section 148 set aside.The assessee filed a writ petition and challenged the order under section 148A(d) of the Income-tax Act, 1961, dated 22nd July, 2022, directing the issue of notice under section 148 and the consequent notice under section 148 dated 22nd July, 2022. It was pointed out that the transaction of Rs. 14 lakhs considered by the Department in the order under section 148A(d) was not in the noticeunder section 148A(b) which is not permitted in law. It was contended that if the said Rs. 14 lakh transaction which has been considered by the Department is excluded from the proceedings then the amount would be less than Rs. 50 lakh and would therefore be outside the purview of the assessment proceedings as per the CBDT circular dated 11th May, 2022 ([2022] 444 ITR (St.) 43).
Chhattisgarh High Court allowed the writ petition and held as under:
“i) From the two notices that were issued on June 29, 2021 and on May 25, 2022, i. e., the noti
