2024 (5) TMI 30

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....ct, 1961 and also the Ld. CIT (Appeals) has erred in confirming the same. 2. The Ld. AO has erred in making addition of Rs. 32,41,640/- (11.81% of Rs. 2,74,48,260/-) and also the Ld. CIT (Appeals) has erred in confirming the same. 2. During the course of hearing, the assessee raising following additional ground: Additional three more ground of appeals: 1. The learned income-tax officer has erred in making reassessment without issuing statutory notice u/s 143(2) of the Act, resulting in reassessment is bad in law. The Ld. CIT (A) has further erred in confirming the same. 2. The Ld. AO has erred in reopening of the case u/s 147 of the Act by issuing notice u/s 148 of the Act after obtaining prior permission of Ld. CIT-5, Mumbai, wher....

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....). He further relied on the decision of the Hon'ble Delhi High Court in the case of Pr. CIT v. Shri Jai Shiv Shankar Travels (P.) Ltd. [2015] 64 Taxmann.com 220 (Delhi). 3.1 In view of the question of no notice issued u/s 143(2) of the Act raised by the assessee, the Ld. Departmental Representative (DR) sought a report from the Assessing Officer. In response, the Assessing Officer filed a report alongwith a copy of the notice u/s 143(2) of the Act. The said notice is however found to be dated 06.08.2013, which was issued in the original assessment proceedings u/s 143(3) of the Act. No notice u/s 143(2) of the Act issued after issue of notice u/s 148 of the Act in the reassessment proceedings, was brought to our attention by the Assessing O....

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.... of the reassessment orders, notice under Section 143(2) of the Act was not issued by the AO to the Assessee. With there being no fresh evidence or disputed facts sought to be brought on record, and the issue being purely one of law, the ITAT was not in error in permitting the Assessee to raise such a point before it. This finds support in the decision of the Supreme Court in National Thermal Power Co. Ltd. v. Commissioner of Income Tax (supra) and the decision of this Court in Gedore Tools (P) Ltd. v. Commissioner of Income Tax (supra). 17. On the question of whether the notice under Section 143(2) of the Act was in the facts and circumstances mandatory, Mr. Sahni sought to distinguish the long line of decisions including the recent deci....

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....ection 142(1) of the Act, which as noted hereinbefore, is in a standard proforma. ****************** 20. 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." 7. In the light of the above decision, this Court is of the opinion that the reasoning and conclusion of the Tribunal cannot be faulted. No substantial question of l....