| Question And Answer | |
|---|---|
| Subject: | Section 148A of Income Tax Act |
| Category: | Income-Tax |
| Querist: | Ruchi Bhansali |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Re assessment, Reassessment, survey |
| Date: | May 17, 2022 |
Survey u/s 133A took place at the premises of builder on 19.03.2019, wherein a diary containing details of on-money received by the said builder was found. On the basis of noting on the said diary, the assessments were completed in the hands of the builder for A.Y 2013-14 to A.Y 2017-18, wherein the additions about the on-money were made. The additions made by the AO were confirmed by the CIT(A) as well as the Tribunal.
AO relying upon an explanation 1(v) to section 148, has issued notice u/s 148A to the purchasers of the flats/shops from the builder on the ground that the order of the ITAT is an information within the meaning of Section 148.
Can the purchasers of the flats/shops object the notice issued u/s 148A relying upon first proviso to section 149(1) of the Act? or is there any other argument which they can contest?
Yes, the purchaser of flat/shops should reply on the first proviso to section 149(1) of the Income-tax Act, 1961 (Act). However, there is a CBDT Instruction no. 1 of 2022, which has, inter alia, instructed Assessing Officers to Assessee AY 2013-14 onwards. Therefore, the purchasers, based on the facts of their case, might have to challenge the Instruction being ultra viresthe Parent Act before the Hon’ble High Court by filing a Writ Petition.