Case Law Details
Sohanbir Sing Vs Assessing Officer (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently examined the case of Sohanbir Sing Vs Assessing Officer, wherein it quashed the reassessment order. The Tribunal held that the non-issuance of notice under section 143(2) for reassessment could not be corrected under Section 292B of the Income Tax Act.
Analysis: In this case, the appellant, Mr. Sohanbir Sing, filed an appeal against the reassessment order issued by the Assessing Officer (AO) for the Assessment Year 2014-15. The appellant contended that the reassessment order should be invalidated as the AO did not comply with the necessary conditions prescribed under Sections 147 to 151 and did not serve mandatory notices as per Sections 143(2), 142(1), and 148 of the Income Tax Act.
After hearing the arguments of both sides, the Tribunal agreed with the appellant, stating that the reassessment order’s failure to issue the necessary notices was a fatal defect and could not be cured under Section 292B of the Act. The Tribunal drew upon judgments from the Hon’ble High Court of Delhi and Supreme Court to validate its verdict.
Conclusion: The ITAT Delhi, in the case of Sohanbir Sing Vs Assessing Officer, stressed the essentiality of issuing a notice for reassessment as mandated by law. It noted that failure to do so is a critical lapse, not correctable under Section 292B of the Act, thereby nullifying the reassessment order.
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