GOVERNMENT OF INDIA

MINISTRY OF FINANCE
INCOME TAX DEPARTMENT

To,
DAMINI GANDHI
NO 111 1ST C CROSS 5TH BLOCK ,BSK 3RD
STAGE 3RD PHASE
BANGALORE 560085 ,Karnataka
*ITBA100073280607*

India

PAN: Assessment Year: Date: DIN:

AKNPG5533F 2019-20 30/01/2024 ITBA/AST/F/147(SCN)/2023-
24/1060240562(1)

Show cause Notice as to why the proposed variation should not be made

Ms/ Mr/ M/s,

Kindly refer to ongoing assessment proceedings in your case for the Assessment Year 2019-20.

2. The following variation(s) prejudicial to your interest are proposed to be made in your case:-

.
1. Details of opportunities given:-

S. Type of notice/ Date of notice/ Date of Response of Date of Response type Remarks if
communication communication compliance the assessee response if (Full/part/adjournment) any.
No. given (received/ received
not received)

1 u/s 148 22.03.2023 Within 30 Days Received ITR filed - ITR filed
16/11/2023

2 u/s 143(2) 10.01.2024 21.01.2024 Not Received No response - -

3 u/s 142(1) 19.10.2023 03.11.2023 Not Received No response - Vide this

notice the
assessee
has been
specifically
asked to
furnish the
documentary

Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in.
 AKNPG5533F- DAMINI GANDHI
A.Y. 2019-20
ITBA/AST/F/147(SCN)/2023-24/1060240562(1)

evidence in
relation to
reported
transactions

4 u/s 142(1) 07.11.2023 16.11.2023 Received 17.11.2023, part -do-

16.01.2024

2. Variation Proposed

2.1 Complete description of issues (issue wise)

The assessee is an Individual. During the year under consideration the assessee has not
filed the return of income. As per the record, no regular assessment u/s 143(3) or u/s 147 of
Income Tax Act, 1961 has been done for this assessment year. In this case, the information
shared and uploaded through ‘Insight Portal’ for the relevant assessment year in accordance
with the ‘Risk Management Strategy’ under the category “High Risk CRIU/VRU information
formulated by the Board (i.e. CBDT). On perusal of the information, it is noticed that the
assessee had entered into the following transactions during F.Y.2018-19 relevant to
Assessment Year 2019-20. The details of transactions are as under.

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 AKNPG5533F- DAMINI GANDHI
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ITBA/AST/F/147(SCN)/2023-24/1060240562(1)

Despite the said high value transactions, the assessee has not filed return of income u/s 139
of the Income Tax Act 1961 for the FY 2018-19 relevant to AY 2019-20 offering source of the
transactions. Therefore the case of the assessee was re-opened u/s 148/147 of the Income
Tax Act, 1961 on the basis of information only by passing order under clause (d) of Section
148A of the Income Tax Act, 1961 dated 22.03.2023 which was after giving opportunity of
being heard to the assessee although the assessee preferred not to reply despite notices
being delivered.

2.2 Synopsis of all submissions of the assessee relating to the issue and
indicating the dates of submission.

The case is re-opened u/s 148 of the Income Tax Act, 1961 vide issued notice u/s 148 dated
22.03.2023 for the A.Y. 2019-20 vide which the assessee was asked to file her ITR for the
year under consideration within 30 days of the notice. In response to notice u/s 148 of the
Income Tax Act, 1961 the assesse has filed its return of income (ITR-4) vide ack. No
515869040161123 on 16/11/2023 declaring income of Rs. 2,83,670/- Subsequently, notice
under sec 142(1) of the Income Tax Act, 1961 along with detailed questionnaire was issued
to him. The assessee was asked to provide the following details along with documentary
evidences to substantiate the reported issue.

• Copy of ITR filed in response of notice issued to him under sec 148.
• Notes on business activities performed during the period under consideration.
• Computation of Income for the AY 2019-20 along with Copy of Profit and Loss Account
(along with all annexures), Balance Sheet (along with all annexures) and Tax Audit

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Report.
• Detailed bank statement of reported bank highlighting debit and credit entries.
• Details of all about related to source of fund for making cash deposits, and purchase of
property, agriculture income, interest income earned during the year under
consideration along with documentary evidence.

In response of the notice issued, the assessee has responded and submit her reply on
17.11.2023 and 16.01.2024. wherein the assesse has furnished written submissions, copy of
return of income that has been filed against notice under sec 148, copy of form 26AS, copy
of bank account statement, copy of purchase deed, computation of income etc. The relevant
extract of the submission is submitted hereunder:

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2.3 Summary of information/evidence collected which proposed to be used

against it (attach documents if required).

The reply of the assessee is considered and on perusal of the same it has been revealed
that during the financial year 2018-19, the assesse has been engaged in carrying on the
business of Provision stores. The address of the same is as follows: NO 111 1ST C CROSS,
5TH BLOCK, BSK 3RD STAGE, 3RD PHASE, BANGALORE, KARNATAKA, 560085.
Further assessee has submitted that she has not made cash deposit of Rs.12,00,000/- in
Allahabad bank. The assesse has made a time deposit of Rs.12,00,000/- in Allahabad bank
and the source of Income for the same is as follows : 1) Receipts from Provision Stores. 2)
Transfer of Rs 10 lakh from her husband account on 3/12/2018.Further in respect of
agriculture income she denied to have agriculture income and also did not have any land in
her name. Assessee has also submitted the copy of purchase deed in which she is having 50
% ownership along with her husband. The screenshot of the agreement carrying both the
purchaser name and loan sanction letter is attached here:

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 AKNPG5533F- DAMINI GANDHI
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ITBA/AST/F/147(SCN)/2023-24/1060240562(1)

On perusal of the same it has been revealed that reported property is purchased in the year
under consideration while the loan sanction letter is having date June 21,2021. Therefore
there is a contradiction to in justifying the source of purchase property. Also assessee failed
to provide any documentary evidence in support of agriculture income and cash deposit
.Therefore reply of the assessee is not considerable and acceptable.

2.4 Variations proposed on the basis of inference drawn (specify the basis
of inference and quantify the variation proposed, if possible).

In view of the above, the assessee is hereby called upon to provide a justification for

a) why the amount of Rs.63,30,841/- paid for purchase of immovable property should not
be treated as unexplained investment and as to why the same shall not be added to the total
income of the assesse under sec 69 of the income tax Act, 1961 on the account of
unexplained investment for the year under consideration and accordingly penalty proceeding
u/s 271AAC of the act, 1961 should not be initiated.
b) Why cash deposit of Rs.12,00,000/- and unexplained agriculture income of Rs.11,
00,000/- should not be treated as unexplained money and as to why the same shall not be
added to the total income of the assesse under sec 69A of the income tax Act, 1961 on the
account of unexplained money for the year under consideration and accordingly penalty
proceeding u/s 271AAC of the act, 1961 should not be initiated.
c) Why interest income of Rs.99,295/- should not be added to total income as other source
income and penalty u/s 270A of the Income Tax Act,1961 should not initiated accordingly.

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 AKNPG5533F- DAMINI GANDHI
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ITBA/AST/F/147(SCN)/2023-24/1060240562(1)

It may kindly be noted that you have to furnish satisfactory explanation with necessary
evidence to this show cause notice. If you fail to do so, it will be presumed that you do not
have any explanation in finding such defects and accordingly, the assessment proceedings in
your case shall be decided.

You are hereby given an opportunity to show cause why proposed variation should not be made and
the assessment should not be completed accordingly.

3. Kindly submit your response through your registered e-filing account at www.incometax.gov.in by
15:30 hours of 05/02/2024, whereby you may either:-

a. accept the proposed variation; or

b. file your written reply objecting to the proposed variation; or
c.If required, in addition to filing written reply you may request for personal hearing so as to make oral
submissions or present your case. The request can only be made by clicking the Seek Video
Conferencing button available against the SCN , in the view notices of this proceeding in the e-
proceedings tab on efiling portal. The request can be made only before expiry of compliance date &
time through video conference.

4. In case no response is received by the given time and date, the assessment shall be finalized taking
into account the variation(s) stated above.

Assessment Unit
Income Tax Department

Digitally signed by
ASSESSMENT UNIT, INCOME
TAX DEPARTMENT
Date: 30-01-2024 11:11:46 IST
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