Nitin Enterprises Vs ITO (Telangana High Court)
Summary: The Telangana High Court dismissed the writ petition filed by Nitin Enterprises challenging the show cause notice dated 26.03.2026 issued under Section 148A(1) of the Income-tax Act, 1961, the order dated 24.06.2026 passed under Section 148A(3), and the consequential notice dated 24.06.2026 issued under Section 148 for Assessment Year 2024-25. The Court considered whether such preliminary reassessment steps could be challenged under Article 226 of the Constitution before the assessee first pursued the statutory reassessment and appellate remedies available under the Act.
The petitioner, a partnership firm engaged in trading in electrical fittings and retail at Hyderabad, had filed its return for AY 2024-25 on 04.10.2024 declaring total income of Rs.21,01,230/-. The return was processed and accepted through an intimation under Section 143(1). According to the supplied judgment, a search and seizure action under Section 132 was conducted on 22.12.2023 in the case of M/s. Polycab India Limited and its group concerns. Thereafter, the Assessing Officer issued the Section 148A(1) show cause notice, accompanied by an Annexure setting out information and reasons recorded for the proposed reassessment.
The notice referred to information received through the Insight Portal under the Risk Management Strategy formulated by the CBDT and alleged that the petitioner had undertaken unexplained and unaccounted transactions aggregating to Rs.3,46,11,545/- during AY 2024-25. It referred to M/s. Polycab India Limited as the source of the information. The petitioner contended that neither the notice nor the Annexure disclosed any specific seized material, document, statement, invoice, ledger account or other incriminating material allegedly pertaining to it.
