S. Palani Vs Additional/Joint/Deputy/ACIT (Madras High Court)
In , the petitioner challenged a notice dated 31.03.2022 issued under Section 148 of the Income Tax Act, 1961 and the consequential assessment order dated 06.03.2023 passed under Sections 147, 144 and 144B for Assessment Year 2018-19.
The proceedings were preceded by a notice dated 21.03.2022 issued under Section 148A(b), followed by an order under Section 148A(d) dated 31.03.2022 and issuance of a notice under Section 148 on the same date.
The petitioner had originally filed a return of income under Section 139(1) declaring taxable income of Rs.30,09,400/-. After receiving the Section 148 notice, the petitioner filed a fresh return on 25.04.2022 reiterating the earlier income declaration.
The assessment proceedings were later transferred to the Faceless Unit, and notices under Sections 142(1) and 143(2) were issued. According to the petitioner, these communications were sent to an old email address which the petitioner had stopped using. The petitioner stated that after the Section 148 notice, returns had been filed through a new email address, but the petitioner failed to check notices uploaded on the portal and therefore overlooked the communications preceding the assessment order.
The petitioner contended that the proceedings arose from a search conducted under Section 132 in the case of M/s G Square and M/s Saravana Stores Bramandamai. Therefore, according to the petitioner, proceedings could have been initiated only under Section 153C and not under Section 148. It was also argued that the addition of Rs.4,87,50,000/- as undisclosed income under Section 69A was unjustified, particularly when a similar addition had already been made in the hands of the petitioner’s brother in separate proceedings for the same assessment year.
