Procedural Lapse in Initial Proceedings u/s 148 of Income Tax nullifies Resultant Notices and Orders Automatically: ITAT [Read Order]
ITAT observed that the procedure adopted by the department was illegal and thus directed to the impugned notices and quashes the resultant assessment order.
![Procedural Lapse in Initial Proceedings u/s 148 of Income Tax nullifies Resultant Notices and Orders Automatically: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/10/ITAT-ITAT-Mumbai-Income-Tax-Reassessment-Taxscan.jpg "Procedural Lapse in Initial Proceedings u/s 148 of Income Tax nullifies Resultant Notices and Orders Automatically: ITAT [Read Order]")
In a recent ruling, the Mumbai Bench of the Income Tax Appellate Tribunal ( ITAT ) nullified the notice issued under Section 148 of the Income Tax Act, 1961, due to procedural lapses on the part of the department. In this case, the appeal has been filed by the assessee against the order passed by the National Faceless Assessment Centre ( NFAC ) relating to the Assessment Year ( AY...
In a recent ruling, the Mumbai Bench of the Income Tax Appellate Tribunal ( ITAT ) nullified the notice issued under Section 148 of the Income Tax Act, 1961, due to procedural lapses on the part of the department.
In this case, the appeal has been filed by the assessee against the order passed by the National Faceless Assessment Centre ( NFAC ) relating to the Assessment Year ( AY ) 2018-19.
The assessee, Chemox Exports Imports Pvt. Ltd., has challenged the reopening of assessment proceedings by issue of notice under Section 148 of the Income Tax Act, 1961, claiming that it is invalid and void.
The counsel on behalf of the assessee, by referring to the decision of the Hon’ble Bombay High Court in the case of Hexaware Technologies Ltd. vs. ACIT & Ors. [2024] 464 ITR 430 (Bom.), contended that the notices under consideration are not only invalid but also bad in law.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The Departmental Representative was unable to bring any distinguishing decision in favour of the revenue.
The ITAT, by examining the observation of the Telangana High Court in the case of Kankanala Ravindra Reddy v. ITO [2023] 156 taxmann.com 178 that “The reason we are quashing the consequential order is on the principles that when the initiation of the proceedings itself was procedurally wrong, the subsequent orders also gets nullified automatically”.
The Mumbai ITAT bench, comprising of Raj Kumar Chauhan ( Judicial Member ) and Narendra Kumar Billaiya ( Accountant Member), held that the notices issues under Section 148 of the Income Tax Act, 1961, and the procedure adopted by the department was illegal and thus directed to the impugned notices and quashes the resultant assessment order.
The ITAT bench allowed the appeal filed by the assessee. The assessee was represented by the Ms. Jigna Jain and the Revenue Mr. Krishna Kumar
To Read the full text of the Order CLICK HERE
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