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TMI Blog2025 (5) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... g year relevant for Assessment Year 2001-02 to 2003-04. He is regularly assessed and the returns for these assessment years were also submitted duly. The returns submitted by the appellant were accepted by the Income Tax Department under Section 143 (1) (a) of the Act. In the balance sheet, the cost of construction was incorporated on the asset side. On 28.07.2003, survey operation under S,133A was carried out by the Department at the professional premises of the appellant where a surrender of Rs. 5,00,000/- was obtained from the appellant on account of construction of the nursing home. Thereafter, during the course of assessment proceedings for the year 2004-05, the assessing officer referred the matter to the District Valuation Officer [hereinafter referred to as DVO] for determining the investment in construction of the nursing home. The DVO estimated the value of the property at Rs. 32,59,004/- as against the total investment shown by the appellant at Rs. 16,45,000/-. Solely on the basis of the DVO's report, the AO added the difference of Rs. 16,14,004/- as undisclosed investment while making assessment for the A.Y. 2004-05. Against the above referred assessment order, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant was granted interim by the learned Single Judge. Case was finally heard on 10.02.2025 whereby the learned Single Judge dismissed the case of the appellant. Hence, this writ appeal. 4. Learned counsel for the appellant submits that he learned Single Judge failed to see that there is gross violations of legal provisions and the respondents have deviated from the procedure laid down for reassessment and calling for District Valuation Officer report. The reassessment notice as well as the DVO's report are bad in law and suffer from grave illegality. The reassessment proceeding is without jurisdiction as it lacks reason to believe that there was any income that has escaped assessment. 'Reason to believe" is the requirement for initiating foundational reassessment proceedings under Section 147 of the Act. In the instant case, there was no new information to suggest that the income of the Appellant has escaped assessment. The jurisdictional facts which are necessary for initiating reassessment proceedings are absent and in such case, reassessment notices and any consequential notice issued pursuant to it, are bad in law and void ab initio. There are catena of decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have been called for as the AO does not have the power to do so under Section 131 (1) (d) of the Act. He also relied upon the judgment passed by the Hon'ble Apex Court in the matter of Amiya Bala Paul vs. CIT (2003) 262 ITR 407(SC) and in the matter of Calcutta Discount Co. Ltd. v. Income-tax Officer, Companies District I, Calcutta and another AIR 1961 SC 372 (V 48 C 60), relevant paras of which quoted hereinbelow:- "(27) Mr. Sastri next pointed out that at the stage when the Income-tax Officer issued the notices he was not acting judicially or quasi-judicially and so a writ of certiorari or prohibition cannot issue. It is well settled however that though the writ of prohibition or certiorari will not issue against an executive authority, the High Courts have power to issue in a fit case an order prohibiting an executive authority from acting without jurisdiction. Where such action of an executive authority acting without jurisdiction subjects or is likely to subject a person to lengthy proceedings and unnecessary harassment, the High Courts, it is well settled, will issue appropriate order or directions to prevent such consequences. (28) Mr. Sastri mentioned more than on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion-115WF, where the assessee, being an employer objects to the value of fringe benefits assessed; (ab) an order of assessment or reassessment under section-115WG;] (b) an order of assessment, reassessment or recomputation under section-147 or section-150; [(ba) an order of assessment or reassessment under section-153A;] (c) an order made under section-154 or section-155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections; (d) an order made under section-163 treating the assessee as the agent of a non-resident; (e) an order made under sub-section (2) or subsection (3) of section-170; (f) an order made under section-171; (g) an order made under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section-185 in respect of an assessment for the assessment year commencing on or before the 1st day of April, 1992; (h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section-186 in respect of any assessment for the assessment year commencing on or before the 1st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n filed under this section. [(1B) Every appeal filed by an assessee in default against an order under sub-section (6A) of section-206C on or after the 1st day of April, 2007 but before the 1st day of June, 2007 shall be deemed to have been filed under this section.] (2) Notwithstanding anything contained in subsection (1) of section-246, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeals and which is so pending shall stand transferred on that date to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day : Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be re-heard. Explanation.-For the purposes of this section, "appointed day" means the day appointed by the Central Government by notification in the Official Gazette.]" 8. We have heard learned counsel for the parties and perused the impugned order and other documents appended with writ app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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