Saloni Prakash Kumar Vs ITO (Madras High Court)
In Saloni Prakash Kumar Vs ITO, the Madras High Court examined the validity of an assessment order dated 22.03.2023 passed under Section 147 read with Section 144B of the Income Tax Act, 1961. The impugned order followed a notice issued under Section 148A(b) on 16.03.2022 and an order under Section 148A(d). The assessment added ₹39,39,768 under Section 68 in place of long-term capital gains claimed from the sale of shares of Monotype India Ltd., treating them as unexplained cash credits. Interest under Sections 234A, 234B, 234C and 234D was levied, and penalty proceedings under Section 271AAC(1) were initiated.
The petitioner contended that the reopening was based entirely on a search conducted in the premises of one Naresh Jain and his associates. It was argued that once a search was conducted, proceedings under Sections 148 and 148A would abate, and the only permissible course was to proceed under Section 153C read with Section 158A. Reliance was placed on the decision of the Hon’ble Supreme Court in Principal Commissioner of Income Tax, Central-3 v. Abhisar Buildwell Pvt. Ltd., which had quoted with approval the Delhi High Court decision in Commissioner of Income Tax, Central-III v. Kabul Chawla.
