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| The Tax Publishers2020 TaxPub(DT) 3657 (Mum-Trib) INCOME TAX ACT, 1961
Section 148
Notice under section 148 could not predate reasons recorded by AO as same would defeat jurisdictional requirement of satisfaction on part of AO before reopening the case of assessee.
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Reassessment - Validity - Issuance of section 148 notice prior to recording of reasons to believe by AO -
Assessee challenged validity of reassessment framed under section 147 on the ground that date of issuance of section 148 notice was 21-8-2013, whereas reason were recorded on 27-8-2013. Held: Assessment could be reopened only in case AO had reason to believe that certain income escaped assessment in the hands of assessee. The formation of that belief was sine qua non before reopening the case of assessee and therefore same should have preceded to issuance of notice under section 148. Notice under section 148 could not predate reasons recorded by AO as same would defeat jurisdictional requirement of satisfaction on part of AO before reopening the case of assessee. This jurisdictional requirement was mandatory one and same could not be overcome by mere fact that assessee did not object to the same or participated in reassessment proceedings. Accordingly, reassessment was set aside as void ab initio.
Relied:ACIT v. Blue Star Ltd. (2015) 61 Taxmann.com 248 (Mumbai) : 2015 TaxPub(DT) 2451 (Mum-Trib), Rajoo Engineers Ltd. v. DCIT (2008) 218 CTR 53 (Guj) : 2008 TaxPub(DT) 2115 (Guj-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2009-10
IN THE ITAT, MUMBAI BENCH
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