Case Law Details
DCIT Vs Thulasi & Others (ITAT Chennai)
ITAT Chennai held that notice u/s 148 of the Income Tax Act being issued mechanically by AO without going through the original assessment records and without verification of documents on records is unsustainable in law.
Facts- The assessee being resident firm was assessed in scrutiny assessment u/s. 143(3). However, the case was reopened on the ground that the assessee firm was taken over by M/s Thulasi Mohan Construction Private Limited on 01-11-2010. The assessee received sale consideration of Rs.2995.60 Lakhs and the transaction did not fall within the purview of Sec. 47(xiii). Since the assessee did not admit any capital gains, the case was reopened and notice u/s. 148 was issued.
In the absence of any return of income or any response from the assessee, AO assessed short term capital gains for Rs.568.71 Lakhs and completed the assessment on best judgment basis u/s. 144.
CIT(A) held the assessment order to be without jurisdiction and therefore, annulled. Being aggrieved, revenue has preferred the present appeal.
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