Harshal Jagannath Gavate vs. ITO, Ward-1, Dhule

Parties Involved

Facts Summary

The assessee, Harshal Jagannath Gavate, did not file his return of income for the assessment year 2013-14. Based on information that the assessee had received large credits in his savings bank account maintained with Renuka Mata Multi State Urban Co-operative Credit Society Ltd., a notice under section 148 of the IT Act was issued on 12.04.2021. Subsequently, a fresh notice under section 148A(b) was issued on 25.05.2022. The assessee filed his return on 05.09.2022, declaring income of Rs.74,800/-. The Assessing Officer completed the assessment proceedings on 25.05.2023, determining the assessee's income at Rs.1,48,82,395/- as against the income of Rs.74,800/- returned by the assessee. The assessee appealed against the order passed by the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then approached the Tribunal, which remanded the matter back to the Commissioner of Income Tax (Appeals) for de novo adjudication. After considering the submissions, the Commissioner of Income Tax (Appeals) again dismissed the appeal.…

Legal Issues

• 1. Validity of the notice issued under section 148 not issued through automated allocation.
• 2. Difference in deposits made with banking company or co-operative society under section 149.
• 3. Potential escapement and conclusive determination of income at the stage of issuance of notice under section 148A(b).
• 4. Cancellation of notice under section 148 due to lack of approval from specified authority.
• 5. Notice under section 148 not issued within 7 days from the stipulated date.
• 6. Notice under section 148 issued without DIN or following mandatory directions.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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