Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 665 - HC - Income TaxValidity of reopening of notice u/s 148 – Notice issued by AO to safeguard against a future contingency - Held that:- The notices have been issued in respect of the amount as bogus sales resulting in disallowing deduction u/s 80IA of the Act for AY 1998-99 and 1999-2000 – assessee contended that on the date when the notices were issued namely dated 28 March 2005 and 3 February 2006 the AO could not have had any reason to believe that income chargeable to tax has escaped assessment u/s 148 of the Act - This is for the reason that the block assessment order has been passed by the AO bringing to tax an amount of ₹ 11.04 crores and ₹ 15.10 crores on account of disallowance of deduction u/s 80 IA of the Act. There is statutory bar prohibiting the revenue from subjecting to tax income under regular assessment as the same has already been subjected to tax as block assessment under Chapter XVIB of the Act – the notices are clearly without jurisdiction and bad in law – relying upon CIT vs. H.N. Shindore [1976 (8) TMI 19 - BOMBAY High Court] – the notices were issued to the petitioner - the notices were more in the nature of protective assessments and would come to the aid of the revenue in case the block assessment orders are found not sustainable – thus, the issue of notices u/s 148 of the Act to safeguard against a future contingency is not permissible – Decided in favour of assessee.
|