Reassessment Order Against Housewife Invalid When Property Was Purchased by Her Husband
Hon’ble Bombay High Court (“BHC”) quashes the order passed under Section 148A(d) holding that it is not a fit case for reopening the assessment in the case of the Petitioner.
Fact of the Case:
The Petitioner, a housewife who had no income and therefore, was not filing any income-tax return, received a notice under Section 148A(b) purportedly based on the information received from Insight Portal under Risk Management Strategy (RMS), that Petitioner had done high value transaction during the impugned A.Y 2016-17.
The information suggested that an immovable property valued at INR 1.14 Cr. was found registered in the name of the Petitioner.
The Petitioner filed reply submitting that the property was purchased by her husband and all the payments were made by him and Petitioner furnished copy of the registered agreement, husband’s bank details, etc.
The Petitioner also explained that her name was included as a joint holder in the agreement for sale, but no payment had been made by her. Despite the details and documents being provided, the impugned order under Section 148A(d) was passed for the impugned AY 2016-17 on the ground that Petitioner has not submitted the details of source for purchase of property by her husband.
Before the Hon’ble BHC, the Revenue conceded that those details have to be sought from the husband during his assessment and not from the Petitioner as the AO has accepted that the Petitioner has not made any payment for purchase of property.
Hon’ble BHC observed that “We also have to notice that surprisingly the Principal Chief Commissioner of Income Tax has also accorded sanction for issuance of this order instead of directing the AO to drop the proceedings against Petitioner.”
Hon’ble BHC allowed the writ and quash and set aside the order dated 31st March 2023 passed under Section 148A(d) of the Act.
The copy of the order is as under:
