Case Law Details
Mahesh Kumar Verma Vs Union of India And 3 Others (Allahabad High Court)
In the case of Mahesh Kumar Verma vs Union of India and Others, the Allahabad High Court addressed the validity of a reassessment notice issued under Section 148 of the Income Tax Act, 1961 (“the Act”). The petitioner, Mahesh Kumar Verma, challenged the legality of the notice and subsequent orders related to the assessment year 2017-18.
Background and Arguments
The dispute arose when the Income Tax Department received information regarding unaccounted cash deposits in the bank accounts of Mahesh Kumar Verma, allegedly made by several entities including M/s Himani International, M/s Bhawani Trading Co., M/s V N Trading Co., and M/s Olivia Tradelinks India Pvt. Ltd. Based on this information, a reassessment proceeding was initiated under Section 148 of the Act.
Mahesh Kumar Verma contended that while he provided explanations for transactions related to M/s Olivia Tradelinks India Pvt. Ltd., he disputed any involvement with cash deposits from this entity into his bank account. He argued that all his bank transactions had already been scrutinized during the original assessment for the relevant year, and no new material suggested income had escaped assessment.
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