S. 148 (b) of Income Tax, 1961 – Reassessment proceedings – Transactions of purchase and sale of shares – Notice under Section 148A(d) issued on different ground as reasons in 148A(b) – If Foundational allegation is missing in the notice issued under Section 148A(b) – Same cannot be incorporated by Issuing Supplementary Notice.
The Show Cause Notice was issued under Section 148A(b) of the Act to the Petitioner and did not contain any allegation of escapement of income nor was the petitioner ever asked to explain the source of funds as alleged in notice issued under Section 148A(d). However, the Impugned order was passed on a completely different ground altogether. If the foundational allegation is missing in the notice issued under Section 148A(b) of the Act, the same cannot be incorporated by issuing a supplementary notice. The show cause notice issued under Section 148A(b) of the Act as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act for the assessment year 2018-19 are quashed. Liberty granted to Respondents/Revenue to take further steps in the matter if the law so permits. If and when such steps are taken and if the Petitioner has a grievance, it shall be at liberty to take its remedies in accordance with law. Reliance is placed on Mahashian Di Hatti Pvt. Limited Vs. Deputy Commissioner of Income Tax, WP(C) 12504/2022 dated 1st September 2022. – Distinguished.
Catchy Prop – Build Private Limited Vs. Assistant Commissioner of Income Tax and Others in W.P.(C) 13734/2022 & CM APPL.41911/202 by the Hon’ble Delhi High Court.
[Coram : Hon’ble Mr. Justice Manmohan Hon’ble Ms. Justice Manmeet Pritam Singh Arora]