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2023 (1) TMI 680 - HC - Income TaxReopening of assessment - validity of second notice issued u/s 148 - AO non-disposing of the return of income filed by the assessee in response to the first notice - whether the AO could have issued a second notice under Section 148 of the Act when the assessee had filed his return of income in response to the first notice issued under Section 148A and such return was not disposed of? - HELD THAT:- This question of law has been answered in several decisions and one of the earliest decisions is in the case of S. Raman Chettiar [1961 (1) TMI 82 - MADRAS HIGH COURT] wherein the Court held that when a return is furnished by the assessee in consequence of a notice issued under Section 34 of the Income Tax Act, 1922, it was not open to the Income Tax Officer to ignore that return and issue a further notice under Section 34(1)(a) on the assumption that there had been an omission or failure on the part of the assessee to make return of his income. This decision was affirmed by the Hon’ble Supreme Court in the Commissioner of Income Tax, Madras vs. S. Raman Chettiar, [1964 (10) TMI 18 - SUPREME COURT] The underlying legal principle is that, when a notice under Section 148 of the Act is issued, the original assessment proceedings are entirely opened up or left open and the finality which had occurred in the first assessment order does not exist any longer. Therefore, without disposing of the return of income filed by the assessee in response to the first notice, the assessing officer could not have issued a second notice for reopening of the assessment which, at the relevant point of time, did not exist in the eye of law. Tribunal had rightly affirmed the order passed by the Commissioner of Income Tax (Appeals) and dismissed the appeal filed by the revenue.
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