NITIN AGRAWAL Vs. JOINT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By this writ petition under Article 226 of the Constitution of India, the petitioner is praying for quashment of show cause notice dated 22.9.2017, issued by the Joint Director of Income Tax under Section 271D / 271E, on the ground that, the same being without jurisdiction and barred by limitation, as provided under Section 275(1)(C) of the Income Tax Act, 1961, on the ground that the first notice was issued by the Deputy Commissioner of Income Tax on 20.12.2016 and thus, the second notice (dt.22.9.2017), was issued under Section 274 read with Section 271-D of the Income Tax Act, after a period of six months from the date of initiation of proceeding, is barred by time.

(2.) Brief facts of the case are that, the petitioner is an assessee of the respondent department and a search was conducted by the Income Tax Authority under Section 132 of the Income Tax Act, in the residential premises of the petitioner and after conclusion of search notice under Section 153A of the Income Tax Act, was served upon the petitioner on 28.9.2015, for the block assessment for the Assessment Years 2009-10 to 2014-15. After receiving the reply from the petitioner on 26.3.2016, the Income Tax Authority commenced the assessment proceedings by issuing notice dated 2.5.2016 under Section 143(2) of the Income Tax Act. The Assessing Officer thereafter, sought information by making assessment of the assessment year 2009-10 to 2015-16 and issued notice dated 5.5.2016 under Section 142 of the Income Tax Act in the form of questionnaire.

(3.) It is not in dispute that during the pendency of the assessment proceedings, the Assessing Officer issued a show cause notice dated 20.12.2016 (Annexure P/5), noticing noncompliances of the provisions of Section 269-SS and 269-T of the Income Tax Act, seeking explanation as to why penalty for violation of provisions of Section 269-SS and 269-T shall not be attracted. The show cause notice Annexure P/5 reads as under :-