Back
YASHWANT VARMA, PURUSHAINDRA KUMAR KAURAV
Seema Gupta – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT
Yashwant Varma, J.
1. This writ petition seeks quashing of proceedings for re- assessment drawn pursuant to the powers conferred under Section 148 of the Income Tax Act, 1961[Act] and assails the notice dated 31 March 2016 issued under Section 148 of the Act as also the order dated 25 July 2016 issued by the respondent. The writ petitioner also additionally assails the notice dated 10 June 2016 issued under Section 143(2) of the Act and the notice dated 01 August 2016 issued under Section 142(1) of the Act.
2. The record would reflect that when the writ petition was originally entertained, we had by an order dated 26 September 2016 restrained the Assessing Officer[AO] from completing the assessment proceedings. It is that interim order which had continued on the writ petition till date.
3. On 07 August 2023, the Court upon hearing preliminary submissions of the parties had passed the following order:
"1. Mr Sumit Lalchandani, learned counsel for the petitioner, informs us that this is a case where two sets of reasons have been recorded.
2. In this behalf, Mr Lalchandani has drawn our attention to Annexure P-7, which is appended on page 47 of the case file, which, according to
Consistency in the reasons provided to the assessee and those existing on the record is crucial in reassessment proceedings under Section 148 of the Income Tax Act, 1961.
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
Assessment - Notice - limitation provided under Section 149 of the Act for issuance of notice commences from the date when the notice is issued and not when the notice served - No interference requir....
Income Tax – Assessment – Issuance of notice - notice under Section 148 was issued by an AO while the order recording reasons was issued by another officer is not borne out from the record – No inter....
Notice under Section 148 was quashed due to lack of timely issuance and failure to substantiate the belief of income escapement with required cogent material, constituting jurisdictional errors.
The court established that the discretionary nature of inquiries under Section 148A does not mandate a personal hearing or exhaustive justification for the Assessing Officer's decisions.
Reopening of assessment under Section 148 is invalid if based on materials already available during the original assessment, constituting a mere change of opinion without fresh evidence.
The court established that under the amended Section 148A of the Income Tax Act, the requirement to record 'reason to believe' has been replaced with a subjective decision-making process, allowing fo....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
