Case Law Details
Noshir Darabshaw Talati Vs ACIT (Bombay High Court)
Bombay High Court held that reassessment proceedings u/s. 148 of the Income Tax Act is liable to be quashed and set aside as original assessment was completed after considering all the facts and material.
Facts- The present petition challenges the impugned notice under Section 148 of the Income Tax Act (“the Act”) dated 31st March 2021 on the ground that the respondent no. 1 had reasons to believe that income chargeable to tax for Assessment Year (AY) 2015-16 has escaped assessment within the meaning of section 147 of the Act and the Assessment Order passed under Section 143(3) r.w.s. 147 of the Act dated 31st March 2022 thereby rejecting the set off of the current year’s long-terms capital loss against long term capital gain and consequently the notice of demand u/s 156 of the Act dated 31st March 2022.
Conclusion- In the present case, the petitioner has disclosed all the primary facts to the respondent as can be evinced from the responses to the original proceedings. We are, accordingly, of the opinion that the original assessment was completed with, after having considered all the facts and material.
Held that the impugned notice u/s 148 of the Act dated 31st March 2021 and assessment order passed u/s 143 (3) r.w.s. 147 of the Act dated 31st March 2022 are quashed and set aside and all consequent actions in furtherance thereto are stayed.
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