INCOME TAX ACT,1961

Sections 147 & 148

Reassessment - Notice under section 148 - Alleged non-filing of return by assessee -

AO initiated reassessment proceedings by issuing notice under section 148 against the assessee on the basis that assessee had not filed his return of income, whereas in fact, assessee had already filed his return of income and also produced all required documents to AO. Assessee contended that the assessment order was illegal, perverse and unsustainable under law, facts and circumstances of the case as the basis on which notice under section 148 was issued, was not true and also AO had erred in law and facts in making addition without providing opportunity of being heard to the assessee. Held: Initiation of reassessment proceedings by AO under section 147 and issuing notice under section 148 was baseless. AO had initiated reassessment proceedings and issued notice under section 148 without application of mind to the facts and circumstances of the case in a hasty manner which vitiated the proceedings and on the basis of incomplete information without any verification of the facts and without complying with the mandatory requirements of sections 147 and 148 of the Act. Therefore, reassessment order passed under section 147 read with section 143(3) was not sustainable being bad in law and, thus, the same was quashed.

ITAT Delhi, SMC Bench in the case of Ajendra Pal Singh (supra). ITA No. 4013/Del/2018, dt. 10-6-2022)

REFERRED :

FAVOUR : In favour of the assessee

A.Y. : 2009-10

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