The Tax Publishers2021 TaxPub(DT) 1024 (Del-Trib)

INCOME TAX ACT, 1961

Section 148

Where reasons of reopening of assessment are materially different from the reasons extracted in the assessment order and since, there was difference in the reasons recorded for reopening assessment as found in the assessment records from reasons extracted in assessment order, neither the assessee could defend its case properly nor the appellate authorities can adjudicate the matter, therefore, matter was remanded back to AO and AO was directed to frame assessment as per reasons recorded for reopening the assessment.

Reassessment - Material difference between reasons extracted in assessment order and reasons recorded for reopening assessment found in assessment record - Remand of matter -

Assessee sought quashing of notice under section 148 on the ground that CIT(A) had erred in upholding the reassessment proceedings initiated under section 147 ignoring the contention of assessee that the proceedings have been initiated by AO without application of independent mind on the material provided by the Investigation Wing of the department. In view of the above defects in the compliances the resultant reassessment proceedings are required to be set aside. The action of the AO under section 147/148 suffers from non-application of mind, in as much as reason fails to bring on record essential details of so-called accommodation entries accepted by assessee and in the absence of these details for. Held: On perusal of the assessment records, reasons of reopening of assessment are materially different from the reasons extracted in the assessment order. When an assessment was reopened and reassessment order was framed, the entire quarrel revolves around the reasons recorded for reopening the assessment. Since there was difference in the reasons recorded for reopening the assessment as found in the assessment records from the reasons extracted in the assessment order, neither the assessee could defend its case properly nor the appellate authorities can adjudicate the matter. In the interest of the justice, matter was remanded back to AO and AO was directed to frame the assessment as per reasons recorded for reopening the assessment.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2010-11



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