A Single Bench of the Calcutta High Court dismissed the writ petition by observing that the benefit from the arranged accommodation entries is unaccounted money.
By the writ petition, the petitioner, Dinesh Kumar Goyal, has challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961 relating to the assessment year 2014-15 which has been passed subsequent to the direction of the Court in the petitioner’s earlier writ petition.
Section 148A of the Income Tax Act, 1961 is a provision that allows the Assessing Officer (AO) to issue a notice to a person who has failed to furnish a return of income, report or statement of financial transaction. This section was introduced by the Finance Act, 2021, and is applicable from 1st April 2021.
After considering the reply/objections of the taxpayer and after further inquiry he is required to pass an order under Section 148A(d) of the Income Tax Act holding a case for a reassessment of certain definite sum escaping assessment.
A Single Judge Bench of Justice Md Nizamuddin observed that “I have perused the aforesaid impugned order where it has been held that the petitioner has benefited himself with an amount of Rs. 15,53,19, 876/- from the arranged accommodation entries which is nothing but unaccounted money of the assessee itself.”
The Bench further noted that “On perusal of the aforesaid impugned order I find that these findings are matters of evidence and based on investigation which cannot be reappreciated in exercise of Constitutional Writ Jurisdiction of this Court and be substituted by its own.”
The Court concluded by noting that the impugned order is neither a final assessment order nor any demand arises out of the same and the petitioner still has got ample scope in the course of the proceeding subsequent to the aforesaid impugned order under Section 148A(d) of the Income Tax Act and after issuance notice under Section 148 of the Income Tax Act to make out his case if he has any in his favour during the course of subsequent proceeding.
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