Allahabad High Court
KANTI KAUSHIK-HUFversusIncome Tax Officer And 2 Others
- Decided
Holding
The Court held that the 2024 show‑cause notice was not based on fresh information and therefore the reassessment proceedings were quashed.
Summary
Petitioner Kanti Kaushik filed a writ petition challenging a show‑cause notice dated 15‑04‑2024 issued under Section 148A of the Income Tax Act, 1961, and a subsequent order under Section 154, both relating to Assessment Year 2017‑18. The revenue department admitted that the information prompting the 2024 notice had already been examined in an earlier reassessment initiated by a notice on 30‑03‑2021 and concluded with an order on 02‑03‑2022. It further explained that the only change was the bank’s name from Oriental Bank of Commerce to Punjab National Bank, and that no fresh information justified reopening the case. The Court examined whether the 2024 notice constituted fresh information under the Act. Finding that it did not, the Court held that the reassessment proceedings were unwarranted and quashed the notice and the order. Consequently, the writ petition was allowed in the limited relief sought.
Issues considered
- Whether the show‑cause notice dated 15‑04‑2024 issued under Section 148A of the Income Tax Act, 1961, was based on fresh information justifying a reassessment for AY 2017‑18.
- Whether the order passed under Section 154 on 22‑04‑2024 can be sustained in view of the earlier reassessment proceedings.
Legislation cited
- Income Tax Act, 1961 — s. 147, 148A, 154
Subjects
- Income Tax
- Section 148A
- Section 154
- fresh information
- reassessment
- show cause notice
- quashing
- writ petition
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT TAX No. - 762 of 2024
Kanti Kaushik-Huf
.....Petitioner(s)
Versus
Income Tax Officer And 2 Others
.....Respondent(s)
Counsel for Petitioner(s) : Anjana Singh
Counsel for Respondent(s) : Ankur Agarwal, Gaurav Mahajan
Court No. - 39
HON'BLE SAUMITRA DAYAL SINGH, J.
HON'BLE SWARUPAMA CHATURVEDI, J.
1. Heard Mr. K.P. Singh Kaushik, Senior Advocate, assisted by Ms.
Anjana Singh, learned counsel for the original petitioner/appellant and
Mr. Ankur Agarwal, learned Senior Standing Counsel for the revenue.
2. The prayer made in the writ petition is confined to the challenge to the
show cause notice dated 15.04.2024, issued under Section 148A of the
Income Tax Act, 1961 (hereinafter referred to as the Act), for the A.Y.
2017-18. Also, challenge has been raised to the order dated 22.04.2024,
passed under Section 154 of the Act, for A.Y. 2017-18.
3. Upon exchange of affidavits, it transpires, the revenue authorities have,
of their own, reached satisfaction that the information giving rise to the
impugned reassessment proceedings had been considered in the first
reassessment proceedings initiated vide show cause notice dated
30.03.2021, which culminated in the order dated 02.03.2022. In that
regard, by means of Supplementary Affidavit, it has been stated as below:
"5. That as per the information uploaded on RMS, the bank in which unexplained credits
were appearing was Punjab National Bank. However, in the case of the initial
reassessment proceedings in which order u/s 147 r.w.s. 144B of the Income Tax Act, 1961
was passed on 02.03.2022, the reassessment proceedings had been initiated on the basis of
information of cash deposit in account maintained with Oriental Bank of Commerce.
6. That in this case, the notice in the second instance appears to have been issued due to
change in the name of bank from Oriental Bank of Commerce to Punjab National Bank in
WTAX No. 762 of 2024
2
the information received. On verification of the details of bank accounts and facts of the
case, it is revealed that the entire credit transactions for the year under consideration had
been examined by the Assessing Officer during the initial reassessment proceedings. Copy
of the information received is filed herewith as ANNEXURE No. SCA1.
7. That from the above, it is apparent that the information flagged in accordance with the
risk management strategy did not constitute fresh information necessitating the subsequent
reopening of reassessment. Thus, the contention of the assessee in this regard seems to be
acceptable."
4. In view of the above, the writ petition succeeds and is allowed to the
extent of limited prayer made. Consequently, the reassessment
proceedings for the A.Y. 2017-18 initiated by the show cause notice dated
15.04.2024, are quashed.
(Swarupama Chaturvedi,J.) (Saumitra Dayal Singh,J.)
September 17, 2026
Prakhar
Digitally signed by :-
PRAKHAR SRIVASTAVA
High Court of Judicature at Allahabad
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