| Question And Answer | |
|---|---|
| Subject: | Sec. 148A(b), 148A(d) and 148 |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | 44AD, Reassessment |
| Date: | April 29, 2023 |
Assessee is individual and offered the income U/Sec.44AD for A.Y. 2015-16. The case of selected for limited scrutiny on the ground that large cash deposits in the Bank. Assessee has given the explanation that these are out of cash sales offered in the Gross sales considered for the computing the income U/Sec. 44AD of the Act. After due verification of evidences submitted and explanation given by the assessee, assessement order was passed 22.12.2017 U/Sec 143(3) of the Act.
A notice U/Sec. 148A(b) of the Act for A.Y 2015-16 sent as per the directions of The Hon’ble Supreme court on 04.05.2022 (2022 SCC Online SC 543) in the case of Union of India V. Ashish Agarwal.
Assessee has given detailed reply to the same , however the AO has not appreciated the same and passed order U/sec. 148A(d) along with Notice U/Sec. 148 with out dealing the objection about change of opinion and non availability of any new tangible material as the assessment order was passed U/Sec. 143(3) , considering the same reason of large cash deposits.
Is action of the AO is legally justified ?
whether stand of No new tangible material and Change of opinion is still valid ground
what is option available to assessee, pl guide
The act of the Ld. AO is not justified. Non-consideration of objections is in violation of the principles of Natural Justice. Further, the Assessee has the grounds of Change of Opinion, True and Full disclosure and the case is beyond 4 years where original scrutiny was made, and absence of any tangible materials.