Bijendra Singh Vs Principal Chief Commissioner of Income Tax (Rajasthan High Court)
Background: The petitioner challenged a pre-reassessment notice dated 16.03.2022 issued under Section 148A(b), the order dated 27.03.2022 under Section 148A(d), and the notice dated 27.03.2022 under Section 148 of the Income Tax Act, 1961. The proceedings concerned Assessment Year 2015-16. The notice under Section 148A(b) called upon the petitioner to respond by 23.03.2022.
Notice period under Section 148A(b): The petitioner contended that the notice was contrary to Section 148A(b), which requires a notice of not less than seven days. The petitioner submitted that the first and last dates had to be excluded and therefore the statutory minimum was not available. The Department fairly accepted that the notice did not comply with the requirement as to the time granted and sought remand for a fresh opportunity.
Limitation under Section 149: The petitioner also challenged the proceedings as barred by limitation. The petitioner contended that the amount involved was below Rs.50,00,000/- and that, for Assessment Year 2015-16, the notice had been issued after three years. The Court examined the bank statement placed on record. It showed three cash deposits of Rs.2,65,000/-, Rs.50,000/- and Rs.39,00,000/-, aggregating to Rs.42,15,000/-. The notice also referred to Rs.41,65,000/-, but the order under Section 148A(d) merely reiterated both figures without further material substantiating the amount having been deposited by the petitioner. The respondents did not dispute the statement of account or establish another bank account.
