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2021 (8) TMI 598 - AT - Income TaxReopening of assessment u/s 147 - Validity of reason to believe - notice not in the name of assessee but issued in the name of minor daughter - HELD THAT:- AO sought to make the assessee as representative assessee u/s. 160(ii), then it was incumbent upon him to issue a notice u/s.148 in the case of the assessee as a representative assessee. Notice cannot be validated even if a notice has been issued in a different name with different PAN and at the same time the income can be assessed in the hands of different assessee, because, Shri Harneet Singh Chandhoke is otherwise an independent assessee assessable to tax. It is not a case of rectifiable mistake u/s. 292B, because even in the reasons recorded the AO has entertained reasons to believe that it was the escapement of income in the hands of Ms. Jyotika Chandhoke and not the assessee. Action of the AO itself shows that there is no application of mind on the material coming into his possession as to whether income escaping assessment belongs to the assessee and not to the assessee's minor daughter. The right course under the law should have been that the assessee's case, should have been reopened and notice u/s. 148, should have been issued in the name of Shri Harneet Singh Chandhoke and if there is any undisclosed income belonging to the minor, then same ought to have been taxed in the hands of the assessee. Thus, the assessment order passed u/s. 147/143 (3) which has been framed on the basis of notice issued in the name of minor daughter, Ms. Jyotika Chandhoke and a different PAN cannot validate the proceedings. Hence, the same is quashed as void ab initio. Accordingly, the appeal of the assessee is allowed.
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