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| The Tax Publishers2019 TaxPub(DT) 7018 (Jp-Trib) INCOME TAX ACT, 1961
Section 148
Where AO had framed the reassessment under section 148 without issuing notice under section 143(2), the reassessment order was invalid because it is mandatory obligation of AO to serve notice by assigning reasons therein with regards to his belief of escaped tax liability before making assessment of any escaped income.
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Reassessment - Validity - Non-issuance of notice under section 143(2) -
Assessee assailed reassessment order passed by AO under section 148 on the ground that notice under section 143(2) was not issued to assessee. CIT(A) rejected assessee's contention holding that mere non-issuance of notice under section 143(2) would not vitiate entire assessment proceedings. Held:The provisions contained in section 143(2) is mandatory even in the case of reassessment because the legislature by using the word 'reason to believe' had cast a duty on AO to apply mind to the material on record with regard to escaped liability and to serve a notice under section 143(2) by assigning reason therein. In absence of any such notice the entire procedure adopted for escaped assessment, shall not be valid.
Followed:Asstt. CIT & Anr. v. M/s. Hotel Blue Moon (2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC), M/S. Travancore Diagnostics (P) Ltd. v. Asstt. CIT (2016) 390 ITR 167 (Ker-HC) : 2016 TaxPub(DT) 4566 (Ker-HC), Pr. CIT v. Jai Shiv Shankar Traders Pvt. Ltd. (2015) 383 ITR 448 (Delhi) : 2015 TaxPub(DT) 4975 (Del-HC), CIT v. M/s. Salarpur Cold Storage Pvt. Ltd. (2019) 50 taxmann.com 105 (All-HC) : 2019 TaxPub(DT) 0257 (All-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, JAIPUR BENCH
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