Re-assessment Proceedings for 2017-18 Declared Null; Authority Lacked Jurisdiction for Second Notice.

The HC quashed the re-assessment proceedings initiated under Section 147 and Section 148 for A.Y. 2017-18, declaring them null and void. The Court held that the Assessing Authority lacked jurisdiction to issue a second re-assessment notice, as the initial re-assessment order, unchallenged and not annulled, had attained finality. The writ petition was allowed with no costs.

---

---

Issues involved:
Challenge to re-assessment proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961 for A.Y. 2017-18.

Summary:

1. The petitioner was originally assessed to tax under Section 143(3) for A.Y. 2017-18. Subsequently, a re-assessment notice was issued under Section 148, and a re-assessment order was passed. The petitioner did not challenge this order, and it attained finality.

2. Despite the absence of any challenge to the previous re-assessment order, a second re-assessment notice was issued invoking Section 148-A of the Act. The petitioner challenged this notice.

3. The revenue authorities argued that a previous notice was digitally signed after the introduction of Section 148-A, rendering the proceedings leading to the re-assessment order vitiated. However, since the previous order was not challenged or revised, and there was no Supreme Court declaration annulling all assessment orders, the subsequent notice was deemed invalid.

4. The Court held that there should be only one assessment order for an assessee for a particular assessment year unless specifically annulled. As the previous re-assessment order was not set aside, the Assessing Authority had no jurisdiction to issue the impugned notice. Therefore, the re-assessment proceedings were declared null and void.

5. Consequently, the re-assessment proceedings initiated for A.Y. 2017-18 under Section 147 and Section 148 were quashed, and the writ petition was allowed with no costs.

---