Case Law Details
Basic Clothing Private Limited Vs ITO (Delhi High Court)
Delhi High Court held that it is settled legal position that re-assessment proceedings under section 148 of the Income Tax Act cannot be triggered on the aspects which AO has already formed an opinion. Accordingly, notice issued u/s 148 set aside.
Facts- Vide the present writ petition, the petitioner/assessee claims that there has been a change of opinion inasmuch as the allegations based on which the reassessment proceedings having been commenced were the subject matters of the assessment order dated 31.03.2022, passed u/s. 147 read with Sections 144 and 144B of the Act.
The respondents/revenue sought to take advantage of the new regime which had kicked in by virtue of the Finance Act, 2021, by issuing a notice dated 02.06.2022, u/s. 148A(b) of the Act. A perusal of this notice would show that the AO referred to the notice dated 31.03.2021, issued u/s. 148 of the Act under the old regime.
Conclusion- Held that the new regime has not veered away from the well-established principle that the re-assessment proceedings cannot be triggered qua aspects vis-a-vis which the AO has already formed an opinion. Accordingly, the notice dated 02.06.2022 issued under Section 148A(b), the impugned order dated 29.07.2022 passed under Section 148A(d) and the consequent notice of even date i.e., 29.07.2022 issued under Section 148 of the Act are set aside.
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