Sushma Aggarwal vs Assisstant Income Tax Officer Circle 43(1)

The petitioner respectfully requests this Hon’ble Court to issue a writ of CERTIORARI or a writ in the nature of CERTIORARI or any other appropriate writ, order, or direction, calling for the records of the Petitioner’s case. After examining the legality and propriety thereof, the Court is urged to quash and set aside the impugned order under Section 148A(d) dated 10.04.2024 for the Assessment Year (A.Y.) 2020-21 and the notice dated 23.03.2024 under Section 14BA(b) of the Act. Additionally, the petitioner seeks the issuance of a writ of prohibition or a writ in the nature of prohibition, or any other appropriate writ, order, or direction under Article 226 of the Constitution of India, prohibiting the Respondents from taking any steps in furtherance of the said order under Section 148A(d) dated 10.04.2024 and the notice under Section 14BA(b) of the Act dated 23.03.2024. The petitioner also requests that, pending the hearing and final disposal of the present petition, this Hon’ble Court restrain the respondents from taking any coercive action against the petitioner based on the impugned order under Section 148A(d) of the Act dated 10.04.2024. The petitioner further seeks interim reliefs in terms of the aforementioned prayers, costs of the petition, and any further and other reliefs as the nature and circumstances of the case may require.

The petitioner is essentially aggrieved by the initiation of reassessment action by the respondents pertaining to Assessment Year (AY) 2020-21. As would be evident from a perusal of the record, in response to the notice issued under Section 148A(b) of the Income Tax Act, 1961 (the “Act”) dated 23 March 2024, the petitioner had furnished a detailed reply which also finds reflection in the impugned order passed under Section 148A(d) of the Act. The petitioner asserts that the impugned actions of the respondents are legally untenable and have been initiated without proper adherence to the statutory requirements and principles of natural justice. Consequently, the petitioner is seeking judicial intervention to protect its rights and prevent any further unlawful or coercive measures from being taken by the respondents based on the contested orders and notices.

We take note of the response which was submitted and which proceeded along the following lines: This is with reference to the captioned subject wherein your honor has stated that the total amount of the transaction made by the assessee as per the annexures attached has not been fully/correctly disclosed to the Income Tax Department and show cause why notice under Section 148 of the IT Act shall not be issued. In this regard, it is submitted that at point no. 1 of page 2 of the captioned notice, you have alleged that the captioned notice has been issued based on the information received through the high-risk CRIU/VRU cases uploaded on the insight portal that the income chargeable to tax for the A.Y. 2020-21 has escaped assessment within the meaning of Section 147 of the IT Act, which is based on Risk Management strategy formulated by the CBDT. Your honor has provided 10 files to the assessee. Your Honor, the total rental income has been correctly reported in the ITR for the year under consideration. Further, as per GST Law, when the turnover exceeds Rs. 20,00,000 in a year relating to the service given, a taxpayer is required to obtain GST Registration and file GST Return. In the instant case, the assessee has filed GST Returns (GSTR-3B) which are showing on the income tax portal. The assessee has declared a total turnover of Rs. 59,22,000/- in GSTR-3B which has also been declared in the Income Tax Return for the year under consideration. A copy of the computation showing Rental income of Rs. 59,22,000/- is attached as Annexure-2. Also, a copy of GSTR 3B filed by the assessee for A.Y. 2020-21 is attached. In this regard, it is submitted that the assessee has purchased a property bearing no. Farm no. 5 measuring 12 Bighas in khaasra no. 170/5, 171/2, 171/3, 184/1, 185/1, situated in Revenue Estate of Village Gadaipur, Tehsil Hauz Khas (Mehrauli), New Delhi from Sh. Ranold Nagar, on 07/01/2020 for a total consideration of Rs. 4,20,01,200/- (including stamp duty of Rs. 16,00,000, registration charges of Rs. 4,00,000, and pasting & miscellaneous charges of Rs. 1,200) in the year under consideration. Further, it is submitted that the purchase consideration was duly paid from the bank account of the assessee and the property is duly fully/correctly reflected in the details of immovable assets filed with the ITR. The copy of the deed in favor of the assessee dated 07/01/2020 is attached herewith as Annexure-4. In this regard, it is submitted that the assessee has given a security deposit to BSES Rajdhani Power Limited for obtaining an electricity connection on which BSES paid interest of Rs. 15,518 (including TDS of Rs. 1,552) which has been fully/correctly declared in the Income Tax return under the head Income from Other Sources. The schedule OS: Income from other sources details are as follows: In this regard, it is submitted that the assessee has earned rental income of Rs. 7,74,000/- from Jagdarshan Singh of premises WZ611, situated at Part 1 Raj Nagar, Palam, New Delhi-110045 (30% share) in total for the year under consideration which has also been fully/correctly declared in the income tax return by the assessee. A copy of the lease deed of premises no. WZ- 611, situated at Part 1 Raj Nagar, Palam, New Delhi-110045 is already attached herewith as Annexure-I (Page no.17-20). A copy of the computation showing rental income of Rs. 7,74,000/- is already attached as Annexure-2.