Jagdish Prasad Agarwala vs. ITO, Ward-44(1)

Parties Involved

Facts Summary

The assessee, Jagdish Prasad Agarwala, filed the return of income on 31.10.2018, declaring a total income of ₹1,93,89,490/-. A search under section 132 of the Act was conducted by the investigation wing on various places of finance brokers on 30.11.2018. It was revealed that the assessee was engaged in dubious financial transactions with Anil Kumar Kesara, finance brokers Sanwaria & Kasera, to the tune of ₹28,15,00,000/-. The investigation wing found that the said broker was engaged in arranging cash loans to interested parties in lieu of commission. Accordingly, proceedings under section 147 of the Act were initiated. The notice under section 148 of the Act was issued to the assessee on 23.03.2022. The assessee complied with the notice by submitting a letter dated 25.03.2022. Thereafter, the notice under section 143(2) of the Act was issued on 16.01.2023. During the course of the assessment, the assessee responded to various notices/questionnaires issued by the Assessing Officer. The evidence collected during the search and post-search proceedings revealed that the finance brokers were engaged in unaccounted cash transactions amounting to ₹28,15,00,000/-, for which the assessee has not produced any documentary evidence. Accordingly, the Assessing Officer held that the assessee is engaged in various dubious transactions with Anil Kumar Kesara, finance brokers Sanwaria & Kasera to the above extent. Finally, the assessment was framed by the AO vide order dated 27.03.2023, passe…

Legal Issues

• 1. Whether the notice under section 143(2) of the Act was issued within the permissible time limit.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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