Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (5) TMI 30 - ITAT MUMBAIValidity of reopening of assessment u/s 147 - no notice u/s 143(2) of the Act was issued by the AO for taking case under scrutiny - HELD THAT:- We find that the Hon’ble Delhi High Court in the case of Pr. CIT v. M/s Paramount Biotech Industries Ltd. [2017 (11) TMI 127 - DELHI HIGH COURT] held that even in the reassessment proceedings issue of notice u/s 143(2) of the Act is mandatory. The proposal to reopen an assessment under Section 147 of the Act is to be based on reasons to be recorded by the AO. Such reasons have to be communicated to the Assessee. However, merely because the Assessee participates in the proceedings pursuant to such notice under Section 148 of the Act, it does not obviate the mandatory requirement of the AO having to issue to the Assessee a notice under Section 143(2) of the Act before finalising the order of the reassessment. Hon’ble High Court has also considered the decision of Hotel Bluemoon [2010 (2) TMI 1 - SUPREME COURT] - thus there being a jurisdictional defect in completing, the reassessment proceedings hence same are held to be invalid. The reassessment proceedings u/s 147 hereby quashed. Decided in favour of assessee.
|