Back
MANINDRA MOHAN SHRIVASTAVA, MUNNURI LAXMAN
Tirupati Construction Company – Appellant
Versus
Income Tax Officer, Rajasthan – Respondent
ORDER :
Since the issue involved in these writ petitions is identical, therefore, both the writ petitions are being decided by this common order. However, for convenience, facts mentioned in Writ Petition No. 17651/2022 are being taken into consideration.
2. The Petitioner-assessee is a partnership firm. It filed its return of income for Assessment Year 2016-17 on 14.10.2016 declaring total income of Rs. 12,690/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961'). According to the petitioner, along with income tax return, copies of the audited balance sheet, profit and loss account were also submitted.
3. Respondent No. 1 issued a notice under Section 148 of the Act of 1961 on 31.03.2022 seeking to reopen the assessment. In compliance of the decision of the Hon'ble Supreme Court in the case of Union of India v. Ashish Agarwal, 2022 SCC Online 543 and instruction issued by the Central Board of Direct Taxes on 11.05.2022, notice under Section 148 was followed by notice under Section 148A(b) of the Act of 1961 on 02.06.2022. This notice shared with the petitioner-assessee certain information alleging that income cha
Reopening of assessment under the Income Tax Act must follow Section 153C if based on incriminating material from a search, not Section 148.
Assessment of income of any other person 153C-[(1)] Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer ....
The court held that in cases of search under Section 132, the provisions of Section 153A apply mandatorily, overriding Section 147 and 148, unless incriminating material is found.
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.
Assessments based on third-party evidence require adherence to Section 153C, not Section 147, to ensure jurisdictional validity.
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
