Invalid Notice Issued Under IT Act Section 148 for 1993-94 Assessment Year Quashed

The notice issued under section 148 of the IT Act for assessment year 1993-94 was challenged. The court found that the reasons were not recorded before the notice was issued, contrary to the requirements of section 148(2) of the Act. As a result, the notice for assessment year 1993-94 was quashed and set aside. The petition was allowed, and no costs were awarded.

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Issues involved: Challenge to notices issued under section 148 of the IT Act for assessment years 1993-94, 1994-95, and 1995-96.

Issue 1: Challenge to notice for assessment year 1993-94
The petitioner challenged a notice issued under section 148 of the IT Act for assessment year 1993-94. The petitioner argued that the reasons for the notice were dated after the notice was issued, which goes against the provisions of section 148(2) of the Act. The respondent contended that the reasons were recorded before the notice was served, based on the dates mentioned on the notice. However, the court held that section 148(2) mandates that reasons must be recorded before issuing any notice. The court found that in this case, the reasons were not recorded before the notice was issued, and therefore, the notice for assessment year 1993-94 was quashed and set aside.

Outcome: The notice dated 16th Jan., 1997 for assessment year 1993-94 was quashed and set aside as the mandatory requirement of recording reasons before issuance of notice was not complied with. The petition was allowed, and there was no order as to costs.

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