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Reopening of assessment u/s 147 of the IT Act , 1961 on the basis of information from Investigation Wing of the department On the basis of information received from the investigation wing of the department, the Assessing officer cannot issue notice u/s 148 of the act mechanically, without using his own mind. He has to […]
The assessee had challenged reopening of assessment on two grounds. The CIT(A) had accepted the arguments of the assessee, in light of provisions of section 147 of the Act, and the assessment order passed by the AO u/s 143(3) of the Act, dated 29/12/2018 and came to the conclusion that the assessment has been reopened on change of opinion without there being any tangible material, in the possession of the AO, which suggest escapement of income.
M/s. Neelkanth Plywood Pvt. Ltd. Vs Income Tax Officer (ITAT Delhi) A perusal of the reasons for reopening of the case for the impugned assessment year, copy of which is placed at paper book page No. 20-21 shows that the reopening was made on the basis of the report of the investigation wing and there […]
Nishi Kapoor Vs ITO (ITAT Delhi) The Assessing Officer who has valid jurisdiction over the case of the assessee shall record reasons u/s 148(2) for reassessment proceedings, otherwise issue of notice u/s 148 is not valid. Reopening notice invalid If the officer who had issued the notice under section 148 of the Act, was different […]
Though AO had issued notice under section 148 on 26-3-2014, i.e., within period of six years from the end of relevant assessment year, however, it was returned unserved by postal authorities and even notice by affixture was also served on 4-4-2014 and there was no report of AO containing names and addresses of witnesses having identified the property, therefore, in the absence of section 148 notice served within stipulated period, reassessment proceedings were invalid.
Notice under section 148 issued to a dead person could not be continued against the legal representatives and moreover, section 292B also could not be resorted to.
otice under section 148 issued on the basis of insufficient compliance to Letters dated 20.05.2011 and dated 02.02.2016 were wholly unauthorized in law as the reasons recorded must indicate that AO had applied his mind to the fact that income was chargeable to tax under the Act and it had exceeded maximum amount not chargeable to income Tax. Hence, reassessment was not valid as there were no reasons recorded by AO in the eye of law for assuming jurisdiction in this case.
Proceedings under section 148 could not be initiated for verification of the sources of investment and therefore, the reasons recorded by AO were no reasons in the eye of law for assuming jurisdiction for issuing notice under section 148.
Notice under section 148 could not be issued for verification of information, but here the jurisdictional satisfaction of the essential requirement had to be shown that there had to be reason to believe that there was income chargeable to tax which was not there in the assessment order passed. Thus, the reasons recorded by AO were no reasons in the eye of law for assuming jurisdiction and the assessment orders u/s 144 read with 147 was quashed.
Where no notice under section 148 is issued or if the notice so issued is shown to be invalid, or the service of notice so issued, is shown to be invalid, AO could not proceed with the subsequent proceedings for making assessment, reassessment or re-computation under section 147. Unless, the notice was served on the proper person in the manner prescribed under section 282, the service was insufficient and AO did not have jurisdiction to re-assess the escaped income.
