Chirania Projects Private Limited & Anr. Vs Union of India & Ors. (Calcutta High Court)
Summary: The Calcutta High Court considered a writ petition challenging the order dated 30.06.2025 passed under Section 148A(3) of the Income Tax Act, 1961 and the consequential notice dated 30.06.2025 issued under Section 148 for Assessment Year 2019-20. The core issue was whether the Assessing Officer was justified in forming a prima facie opinion regarding escapement of income without allegedly adhering to the procedural safeguards under Section 148A.
The petitioners contended that the Assessing Officer had travelled beyond the scope of the show cause notice dated 26.03.2025 issued under Section 148A(1). They submitted that although a specific request for personal hearing had been made in the reply dated 16.04.2025, no hearing was granted, thereby violating principles of natural justice. It was further argued that material information derived from TAS had not been furnished with the show cause notice and that an addition of Rs. 1,45,01,700/- on account of cash deposit was introduced for the first time in the final order. On merits, the petitioners submitted that Rs. 1,68,00,000/- had been received as an unsecured loan through proper banking channels and sufficient documentary evidence had been placed on record to establish the lender’s identity, creditworthiness and genuineness of the transaction.
