On a writ petition challenging the notice under section\u00a0148\u00a0of the\u00a0Income-tax Act, 1961\u00a0and the order under section\u00a0148A(d), dated July 22, 2022 on the grounds that the authorities considered certain transactions which were not part of the notice that was originally issued under section\u00a0148\u00a0(old provision) and under section\u00a0148A(b)\u00a0(new provision) and that if the transaction of Rs. 14 lakhs considered by the Department was excluded from the proceedings the amount would be less than Rs. 50 lakhs and would be outside the purview of the assessment proceedings according to the circular dated May 11, 2022 ([2022] 444 ITR (St.) 43) issued by the central Board of Direct Taxes\u2002. Allowing the petition the Court held that from the two notices that were issued on June 29, 2021 and on May 25, 2022, i. e., the notices initially issued under section\u00a0148\u00a0(old provision) and under section\u00a0148A(b)\u00a0(new provision) the Department had not disclosed the fact that the assessee had suppressed Rs. 14 lakhs transaction which had also escaped assessment under section\u00a0147. In the absence of its being stated in the notice, the assessment of such an amount would be prima facie bad since the Department could not travel beyond the show-cause notice. Given the facts and circumstances and in view of the circular dated May 11, 2022, issued by the Central Board of Direct Taxes the order under section\u00a0148A(d)\u00a0and the consequent notice under section\u00a0148\u00a0dated July 22, 2022, were unsustainable and therefore were set aside reserving the right of the Department to take appropriate recourse available in accordance with the law.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Transactions not disclosed in initial notices-Department cannot travel beyond notice-Notice and order set aside. [S. 147, 148, 148A(b), 148A(d), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-33514","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8Iy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=33514"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33514\/revisions"}],"predecessor-version":[{"id":33515,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33514\/revisions\/33515"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=33514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=33514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=33514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}