In case of change of AO, newly appointed AO shall continue proceeding from stage where they were left by earlier AO

DCIT Vs Mastech Technologies Pvt. Ltd. (Supreme Court of India)

In case of change of AO, newly appointed AO shall continue proceeding from stage where they were left by earlier AO

The Hon’ble Supreme Court (“the Supreme Court”) in the case of Dy. Commissioner of Income Tax New Delhi v. M/s Mastech Technologies Pvt. Ltd. (Civil Appeal No. No. 8077 OF 2022) dated November 03, 2022 held that in case of transfer of Assessing Officer (“AO”), the new AO can only continue the proceeding from the stage at which earlier AO had left.

Facts:

M/s Mastech Technologies Pvt. Ltd. (“the Respondent”) filed return of income for Assessment Year 2008-09 declaring loss. On March 23, 2015, the AO issued notice (“First Notice”) for reassessment under Section 148 of the Income Tax Act, 1961 (“the Income Tax Act”). However, due to transfer of the AO, the case was assigned to the new AO. Subsequently, the new AO again issued notice (“Second Notice”) under Section 148 of the Income Tax Act dated January 18, 2016. The Respondent submitted its objection against re-opening the assessment vide letter dated March 07, 2016. However, the AO rejected the objection of the Respondent and vide Order dated on March 30, 2016 (“the Order”), passed an Order directing the Respondent to deposit additional tax under Section 143(3) of the Income Tax Act.

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