The Delhi High Court observed that the reassessment proceedings can be triggered only when notice under Section 148 of Income Tax Act, 1961 has been issued and served.
As noted on 10.03.2023, the respondent/assessee was not served with a notice under Section 148 of the Income Tax Act, 1961. The assessment order was passed by the Assessing Officer (AO) despite being made aware of the fact that the respondent/assessee had not been served with a notice under Section 148 of the Income Tax Act.
Before making the assessment, reassessment, or re-computation, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in such notice, a return of his income or the income of any other person in respect of which he is assessable. The assessee is required to produce the details of his/her income tax returns within such period as may be specified in such notice by the assessing officer.
A Division Bench comprising Justices Rajiv Shakdher and Girish Kathpalia observed that “The reassessment proceedings can be triggered only when a notice under Section 148 of the Income Tax Act has been issued and served on the concerned assessee. This is a finding of fact. Both the CIT(A) as well as the Tribunal have come to a definitive conclusion that the service of notice under Section 148 of the Income Tax Act was not effected on the respondent/assessee.”
“Therefore, according to us, no interference is called for with the impugned order dated 21.08.2020 passed by the Tribunal. The Tribunal has returned, as indicated above, a finding of fact. Thus, no substantial question of law arises for our consideration” the Court concluded.
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