Abhinav Jain Vs ITO & Ors. (Delhi High Court)
Delhi High Court held that challenge to reassessment proceedings initiated under Income Tax Act failed as Court cannot act as an AO and call such documents which otherwise can be done by AO. Accordingly, petition dismissed.
Facts- It was alleged that information under Non-filers Monitoring System (NMS) category was pushed through the insight portal demonstrating that during the financial year relevant to AY 2018-19, the petitioner had entered into certain transactions relating to receipts of various amounts, being in the nature of foreign remittance, interest income and time deposits in banks and despite the fact that transactions pertained to significant amounts giving rise to “taxable income”, the petitioner had not filed his ITR for AY 2018-19.
Thereafter, the respondent/Revenue issued a notice u/s. 148A(b) of the Act upon the petitioner on 22.03.2022, based on the information of the insight portal. The aforesaid information, it was stated, fell in the category of Explanation 1(i) to Section 148 of the Act and suggested that income to the tune of Rs.9,28,66,191/- being chargeable to tax has escaped assessment and it is a fit case for issuing notice u/s. 148 of the Act. The petitioner was provided an opportunity to present his case by 28.03.2022, and justify why a show cause notice u/s. 148 of the Act initiating reassessment proceedings should not be issued to him. The petitioner submitted his reply to this show cause notice on 26.03.2022. Thereafter, the respondent no.1 issued two corrigenda to the show cause notice u/s. 148A(b), on 31.03.2022 and on 01.04.2022, extending the time limit for furnishing response to the show cause notice issued, till 02.04.2022. Thereafter, an order u/s. 148A(d), (impugned order) was passed, initiating reassessment proceedings in the case of the petitioner, on 07.04.2022.
