ITA no.3660/Mum./2024

Parties Involved

Facts Summary

Arihant Engineers, a firm, was a non-filer of the return for the year under consideration. Certain high-value transactions were captured by the system in the assessee's PAN, leading to proceedings under section 148A of the Income Tax Act, 1961. A show cause notice under section 148A(b) was issued to the assessee. The assessee submitted its reply and explanations, but the Jurisdictional Assessing Officer disagreed and passed an order under section 148A(d) of the Act, holding that the purchase cost as per the copy of the order of MIDC was Rs. 19,84,500 whereas the purchase cost adopted by the assessee was Rs. 21,19,405. The Jurisdictional Assessing Officer held that the income chargeable to tax amounting to Rs. 65 lakh had escaped assessment and issued a notice under section 148 of the Act for the assessment year 2018-19. The assessment order was passed under section 147 read with section 144B of the Act computing long-term capital gains at Rs. 22,92,130 and adding the same to the total income of the assessee.…

Legal Issues

• 1. Validity of reassessment proceedings initiated under section 147 of the Act.
• 2. Whether the approval of the specified authority was obtained correctly.

Judgment Outcome

Decided in favour of Assessee.

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