INCOME TAX ACT, 1961

Section 148

Reassessment - No notice under section 143(2) was issued - Validity of notice under section 148 -

Assessee was issued notice under section 148 for reopening of assessment. Assessee in response to notice stated that return originally filed be treated as return filed in response to notice under section 148. No notice under section 143(2) was issued after filing of return by assessee. Assessee stated that when no notice under section 143(2), which is a jurisdictional notice, was issued to assessee in response to return filed under section 148, assessment framed was invalid and bad in law.Held: Assessment order was framed by AO without assuming the jurisdiction under section 143(2) and without serving upon the assessee the necessary notices there under. Assessee has filed return of income at NIL in response to notice under Section 148. CIT(A) relied upon the decision of Tribunal in case of ITO v. Sanjay being ITA No. 3701/Del/2018 and held that assessment order was defective in law and was annulled. Thus, AO was directed to reopen the assessment under section 147 and thereafter, reframe the assessment order after following the due process of law and after issuing necessary notices to the assessee as per law and after giving to the assessee reasonable opportunity of being heard.

Followed:Pr. CIT v. Broadway Shoe Co. [ITA No. 10/2017, dt. 11-10-2018] : 2018 TaxPub(DT) 6861 (J&K-HC), ITO v. Sanjay [ITA No. 3701/Del/2018, dt. 2-3-2020] and ITO v. Neetee Clothing (P) Ltd. [ITA No.267/Del./2013, dt. 21-10-2015]

REFERRED :

FAVOUR : In assessee's favour by way of remand.

A.Y. : 2009-10

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