The Tax Publishers2019 TaxPub(DT) 0817 (Mum-Trib)

INCOME TAX ACT, 1961

Section 148

Where notice for reassessment was issued by AO under section 148, the same was issued without jurisdiction because reasons for the notice under section 148 nowhere mentioned that revenue had come up with any other fresh material warranting re-opening of assessment.

Reassessment - Validity of reasons to believe - No tangible material placed on record -

AO issued notice for reopening of assessment under section 148 on the reason to believe that assessee failed to substantiate its claim of rebate under section 88E and claimed excess rebate under section 88E. Thus, income of assessee had escaped assessment from tax. Held: Pre-conditions to invoke the reassessment proceedings under section 147 was that AO had reasons to believe that certain income escaped assessment and such escapement had occurred due to failure on the part of assessee to disclose fully and truly all material facts necessary for his assessment. The reasons for the notice under section 148 nowhere mentioned that revenue had come up with any other fresh material warranting re-opening of assessment. Therefore, notice for reassessment was quashed.

Relied:CIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) CIT v. Foramer France (2003) 264 ITR 566 (SC) : 2003 TaxPub(DT) 0933 (SC) Asian Paints Ltd. v. DCIT (2009) 308 ITR 195 (Bom ) : 2009 TaxPub(DT) 0640 (Bom-HC) CIT v. Kalvinator of India Ltd. (2002) 256 ITR 1 (Del) : 2002 TaxPub(DT) 1348 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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