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| The Tax Publishers2020 TaxPub(DT) 1801 (P&H-HC) INCOME TAX ACT, 1961
Section 147
Tribunal rightly treated notice issued under section 148 as invalid on ground that reasons recorded were unsigned. The mere fact that reasons existed on file could not sanctify them and only way to ascertain whether requirements under section 147 were met out would be at the very least that AO sign the same.
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Reassessment - Validity - Reasons recorded not signed by AO -
Revenue challenged order of Tribunal quashing re-assessment order by treating notice issued under section 148 as invalid on ground that reasons recorded were unsigned. Case of revenue was that assessee neither obtained copy of reasons recorded nor submitted any objection against validity of notice under section 148. Held: The mere fact that reasons existed on file could not sanctify them and only way to ascertain whether requirements under section 147 were met out would be at the very least that AO sign the same. Without signatures, document becomes anonymous piece of paper to which no credence can be given. The action under section 147 is quasi-judicial action and if it is permitted that such action can be done as anonymously, it would have very serious consequences in other cases also. If Court accepts such pieces of paper who can tomorrow stop an assessee from substituting a signed paper with another unsigned paper? Moreover, reasons are undated, thus did not establish that they were recorded prior to issuance of notice.
REFERRED : GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 0734 (SC); Shri Prahalad Singh v. ITO, Ward 3 (2), Gurgaon [SA No. 436/Del/2017 & ITA No. 3375/Del/2017, dt. 11-5-2018] : 2018 TaxPub(DT) 2697 (Del-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE PUNJAB & HARYANA HIGH COURT
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