Rahul Meka Vs ITO (International Taxation) (ITAT Bangalore)
The appeal was filed against the reassessment order dated 08/03/2024 passed under sections 147 read with 144C(13) of the Income Tax Act, 1961 for Assessment Year (AY) 2016–17. The assessee had originally filed his return on 01/08/2016 declaring total income of ₹15,850. The Assessing Officer (AO) determined total income at ₹75,69,043, making additions under section 68 of ₹47,00,000 as unexplained cash credits and ₹28,53,193 as long-term capital gains, while denying exemption under section 54F. Interest under sections 234A, 234B, and 234C was also levied.
In addition to contesting the additions on merits, the assessee raised legal grounds challenging the validity of the reassessment proceedings initiated under sections 147 and 148. The Tribunal admitted the additional legal grounds, observing that they were purely legal in nature and did not require fresh investigation of facts.
The original notice under section 148 was issued on 29/06/2021. Pursuant to the Supreme Court’s decision in Union of India v. Ashish Agarwal, the notice was treated as a show cause notice under section 148A(b). After considering the assessee’s reply, the AO passed an order under section 148A(d) and issued a fresh notice under section 148 on 29/07/2022, after obtaining approval from the Principal Commissioner of Income Tax (PCIT), Bengaluru-2.
