Landmark Judgement : No reasons were not communicated to assessee, HC rightly quashed reassessment proceedings

Janak Shantilal Mehta

[2021] 124 taxmann.com 516 (Madras)

Short Overview: 

Section 148 of the Income-tax Act, 1961

 Income escaping assessment

Notice for (Recording of reasons)

 Assessment year 2006-07

 Assessing Officer reopened assessment on ground that in original assessment, he had extended excessive and unnecessary relief to assessee on wrong appreciation of facts

 Tribunal quashed said reassessment proceedings on ground that reasons for reopening were not communicated to assessee and despite opportunities, revenue was not able to produce any evidence to show that reasons recorded for reopening had been provided to assessee as requested by them in their letter .

Whether Tribunal was right in quashing reassessment proceedings

 Held, yes

It was held that Tribunal was right in quashing reassessment proceedings by Assessing Officer on ground that reasons for reopening were not communicated to assessee and despite opportunities; revenue was not able to produce any evidence to show that reasons recorded for reopening had been provided to assessee as requested by them in their letter