INCOME TAX ACT, 1961

Section 148

Reassessment - Notice under section 148 - Validity - Formation of belief as to tax escapement on the basis of information called for by AO from Investigation Wing

AO called for certain information from Investigation Wing and upon being supplied with the material, formed a belief that income chargeable to tax had escaped assessment and accordingly, AO issued notice under section 148. Assessee challenged validity thereof on the ground that once AO completed assessment, he lost all his rights to call for any other information in connection with such assessment.Held: Once assessment is over if AO is allowed to act only after some information is provided to him by some other departmental authority or wing, It would amount to rendering an AO a mute spectator. There is neither any statuory force nor any reason to limit his role in this respect. As there was preliminary or prima facie material with AO to trigger a further inquiry inter or intra-departmentally and AO called for inforamtion from another wing or office of department, and information upon being supplied he utilised and on the basis of reliable information so provided to him formed a belief that income chargeable to tax had escaped assessment, process could not be faulted and thus impugned notice under section 148 was sustained.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

SUBSCRIBE FOR FULL CONTENT