CIT v. IDBI Ltd.

INCOME TAX ACT, 1961

--Reassessment--Notice under section 148Reasons not provided --AO's presumption that assessee was aware of reasons--Where AO issued section 148 but did not provide the reasons for reopening even when asked for by assessee on the presumption that assessee was aware of the reasons, he was not justified since supply of reason for reopening is a jurisdictional requirement.--AO issued a section 148 notice seeking to reopen assessment of the assessee. Assessee sought a copy of reasons recorded for issuing notice. Same was not provided by AO on the ground that a search was initiated on certain lessees in respect of transactions with assessee and AO was presuming that assessee was aware of the reasons.Held: The supply of reason in support of the notice for reopening of an assessment is a jurisdictional requirement, which shows whether AO had at all applied his mind and had reasons to believe that taxable income has escaped assessment. In the absence of supply of reasons recorded for issue of reopening notice, the assessment order was without jurisdiction and same was to be deleted.