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2019 (3) TMI 1123 - MADRAS HIGH COURTReopening of assessment u/s 147 - repeat (2nd) Notice under Section 148 - period of limitation - any fresh material in possession of the AO suggesting escapement of the income at the time of issuance of fresh notice - reasons for issuing fresh or subsequent reassessment Notice - sale of land claimed by to be agricultural land located at Muthukadu Village which is beyond 8 km from city limits - HELD THAT:- The reassessment notice said to have been issued on 16.08.2002 for the Assessment Years 1997-98 and 1998-1999 and the alleged reason given by the successor-in-office viz., K.Rajaram is said to be that the brochure of M/s.Shoreline (P) Ltd., came on the record of the Assessing Authority only on 19.03.2001 when the Assessee appeared pursuant to the first notice under Section 147 of the Act which is said to be issued on 25.01.2001. But, since the earlier recorded reasons referred to such Brochure it was a defective notice and which defect could be cured according to the subsequent authority and there was thus a need to issue a fresh notice under Section 147 of the Act. Second reason recorded in the computer sheet was recorded after the issuance of the notice itself, though the Assessee had already filed its return in the same Circle on 28.11.1997 and assessment under Section 143 of the Act was completed on 29.01.1998 and therefore the said second reason was recorded after issuing notice under Section 148 of the Act which was not valid. Having regard to the submission of Revenue, we are rather dismayed with the manner in which the two authorities, of the Department have acted while invoking their substantive powers of re-assessment under Sections 147/148 of the Act. The said powers under the said Act are invoked only subject to the legal restrictions and limitations prescribed in those provisions and at the core of such power of reassessment lies the "reason to believe" that the income has escaped assessment in the hands of the Assessee for the assessment year in question. These two alleged lacunae or irregularities could not be held to be a sufficient reason for issuing a repeat Notice under Section 148 of the Act. Such repeat and subsequent Notice indicates that either the previous officer Mr. S.Ganapathy did not even actually record any reason prior to or on 25.01.2001 or the Successor-in-office Mr.Rajaram was only trying to cover up the so called lacunae or defects. Both are impermissible situations in law, for invoking powers under Sections 147 and 148 of the Act. We are constrained to observe that the reassessment powers were invoked by assessing officers very casually and lightly not adhereing to the legal restrictions for exercise of such powers under Section 147/148 of the Act. The Assessee, in these circumstances, when served with the repeat or second notice for the same Assessment years, was compelled to approach the Court of law and seek protection against the the second reassessment Notice for the very same Assessment Year 1997- 1998. The learned single Judge in our opinion was absolutely justified in quashing the notice under Section 147 and 148 of the Act for Assessment Year 1997-1998.- Decided in favour of assessee.
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