Urvashi Kanubhai Desai Vs ITO (Gujarat High Court)
Gujarat High Court held that the proceedings under Section 148 of the Income Tax Act cannot be initiated to review the earlier stand adopted by the Assessing Officer. Accordingly, initiation of reassessment proceedings u/s. 148A(d) on the same ground which is already considered by AO cannot be sustained.
Facts- The petitioner is an individual and engaged in the business of data, data selling and purchasing under the trade name “Excellere Outsourcing Services.” It is the case of the petitioner that subsequent to filing of the return of income, the respondent initiated reassessment proceedings u/s. 147 of the Act by issuing notice u/s. 148 of the Act. The petitioner in response to notice dated 30.03.2021 filed the return of income on 17.01.2022 declaring total income at Rs.3,20,580/- for the Assessment Year 2016-17. The respondent thereafter issued notice u/s. 142(1) of the Act dated 11.01.2022 asking the petitioner to submit details relating to the transactions in respect of Crypto Currency along with detailed computation of capital gain. Thereafter, the respondent issued show cause notice dated 28.02.2022 proposing to make additions of Rs.8,77,250/- as short term capital gains on sale of Crypto Currency.
It is the case of the petitioner that regular assessment was completed and Assessment Order u/s. 147 r.w.s. 144B of the Act was passed on 15.03.2022 for the Assessment Year 2016-17 computing the total income of petitioner at Rs.3,20,580/-. However, the respondent once again initiated the assessment proceedings under the new regime u/s. 148A of the Act by initially issuing notice u/s. 148A(b) of the Act on 30.03.2023 on the same ground relating to Crypto Currency stating that the petitioner had entered into high value transactions in Crypto Currencies during Assessment Year 2016-17 and that the petitioner has not disclosed any profit from Crypto Currency in their return. The respondent passed the impugned order u/s. 148A(d) of the Act on 13.04.2023 holding that the income to the tune of Rs.59,89,590 had escaped the assessment and therefore, the case of the petitioner is fit for the issuance of notice u/s. 148 of the Act. Thereafter notice u/s. 148 of the Act was issued on 13.04.2023. The impugned order passed under Section 148A(d) of the Act and the notice issued u/s. 148 of the Act are the cornerstone of the challenge in the present writ petition.
