Sunil Kumar Sahoo Vs DCIT (Orissa High Court)
Orissa High Court held that assessment order set aside as proceedings under section 148 of the Income Tax Act initiated without serving of statutory notice. Accordingly, matter remitted back to AO to serve notice u/s. 148 as not hit by limitation u/s. 149.
Facts- The petitioner filed return of income for the assessment year 2012-13 on 05.04.2013 under the Income Tax Act, 1961 declaring total income at Rs.22,26,000/-. Notably, the Deputy Commissioner of Income Tax without causing any independent inquiry with respect to information received vide Letter dated 29.03.2017 from the Deputy Director of Income Tax (Investigation), Unit–2(2), Bhubaneswar reopened the Assessment for A.Y. 2012-13. Subsequent thereto, a penalty proceeding was initiated by issue of show cause notice in obedience to which the petitioner having appeared in the said proceeding, the Assessing Authority imposed penalty u/s. 271C of the IT Act on 13.04.2018.
Neither the Notice u/s. 147 nor was the Assessment Order served on the petitioner. The petitioner came to know about the Assessment Order and the Demand Notice passed u/s. 147/144 of the IT Act, on 21.05.2025 when a Tax Recovery Proceeding was initiated. Hence this application has been filed questioning jurisdiction of AO to pass Assessment Order dated 14.11.2017 u/s. 147 r.w.s. 144 and as a consequence thereof raise demand u/s. 156 of the IT Act without ensuring service of Notice u/s. 148.
