INCOME TAX ACT, 1961

Section 147 Section 148

Reassessment - Validity - No return filed under section 139(1) or in response to notice under section 148 -

In response to notice under section 148, assessee did not any return of income and consequently reassessments were made under section 144 read with section 147, whereby the amounts found deposited in bank account were assessed as total income of assessees. CIT(A) did not accept explanation of assessees on the ground that the assessees did not produce any record in support of explanation of source of deposits made in bank account. Assessees raised additional ground in appeal before Tribunal challenging the validity of notice under section 148.Held: Validity of notice under section 148 can be challenged at initial stage by filing writ petition before High Court or it can be objected before AO by filing the objections and then in appellate proceedings. Objections against notice under section 148 can be filed only after the return of income in response to notice under section 148 is filed by assessee. Assessees neither filed any return of income under section 139(1) nor in response to notice under section 148 and therefore, assessee cannot raise any objection before AO against notice under section 148 and consequently, said objection cannot be raised before the appellate authority. Accordingly, additional ground raised by assessee was not admitted.

Followed:GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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