Chemox Exports Imports Pvt. Ltd. Vs Income Tax Department Assessment Unit (ITAT Mumbai)
ITAT Mumbai held that notice issued under section 148 of the Income Tax Act and procedure adopted being per se illegal hence the notices deserves to be set aside/ quashed.
Facts- The present appeal is preferred by the assessee mainly contesting the reopening of assessment proceedings by issue of notice under section 148 of the Income Tax Act claiming that it is invalid and void.
Conclusion- Hon’ble Telangana High Court in the case of Kankanala Ravindra Reddy vs. ITO held that the procedure to be followed by the respondent-Department upon treating the notices issued for reassessment being under section 148A, the subsequent proceedings was mandatorily required to be undertaken under the substituted provisions as laid down under the Finance Act, 2021. In the absence of which, we are constrained to hold that the procedure adopted by the respondent-Department is in contravention to the statute i.e. the Finance Act, 2021.
Held that the notices so issued and the procedure adopted being per se illegal and the impugned notices deserve to be set aside/quashed thereby quashing the resultant assessment order. Since we have set aside the impugned notices, we do not find it necessary to delve into the merits of the case.
