INCOME TAX ACT, 1961

Section 148

Reassessment - Reason for reassessment not supplied to assessee - Non passing of speaking order -

AO issued notice under section 148 on the ground that it had reasons to believe that assessee's income chargeable to tax for the assessment year 2015-16 had escaped assessment within the meaning of section 147 and, therefore, assessee was asked to deliver her return in the prescribed form for the said assessment year within thirty days. Assessee submitted that after receiving of Notice, dated 26-2-2020, he asked for supply of reasons along with copy of sanction letter but the same have not been supplied to her and Revenue was proceeding against assessee under Section 148 without giving any reasons for the same and assessee had every reason to believe that no reasons have been recorded by Revenue while issuing notice. Held: As decided in GKN Driveshafts (India) Ltd [2003 (1) SCC 72 : 2003 TaxPub(DT) 0734 (SC)] when a notice under section 148 was issued, the proper course of action for the noticee is to file a return and if he so desires, to sought reasons for issuing notices. AO was bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee was entitled to file objections to issuance of notice and AO was bound to dispose of the same by passing a speaking order. AO was directed to supply the reasons to assessee and further, AO shall consider the objections of assessee and dispose of same by passing a speaking order within a reasonable time.

Followed:GKN Driveshafts (India) Ltd. v. ITO & Ors. 2003 (1) SCC 72 : 2003 TaxPub(DT) 0734 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2015-16

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