2026 (8) TMI 1646

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....Act"] dated 31.01.2024, passed by Assessment Unit, Income Tax Department [in short, "the Ld.AO"]. The grounds of appeal raised by the assessee are as under: "1. The Ld Commissioner of Income Tax (Appeals) erred in upholding the addition of Rs. 2,59,939 i.e., 25% on alleged bogus purchase without giving reasonable opportunity of hearing. 2. The Ld Commissioner of Income Tax (Appeals) erred in not discussing the rateability of tax u/s 115BBE of the Act, which is not called for in the facts and circumstance of the Case. 3. The Ld Commissioner of Income Tax (Appeals) erred in quoting Grounds of Appeal which were not taken the Appellant before him." 2. The case of assessee was reopened on the basis of investigation ....

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....ely to amount to Rs. 50 lakh or more. It is submitted that since in present case on both the counts the AO was failed to adhere to the provisions of Act, therefore the notice u/s 148 vitiates and consequential the assessment framed cannot survive. 4. Ld. DR, per contra supported the orders of revenue authorities. 5. We have considered the rival submissions, perused the material available on record and examined the case laws relied upon by the assessee. 6. The assessment year under consideration is AY 2018-19 and the notice under section 148 of the Act was issued on 7 April 2022, undoubtedly, after the expiry of three years from the end of the relevant assessment year. Therefore, the issuance of such notice shall be governed by the ....

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....ed under section 149(1)(b) qua limitation and the requirement relating to the specified authority under section 151(ii) have not been complied with. The initiation of reassessment proceedings, therefore, suffers from non-compliance with both the mandatory statutory conditions governing assumption of jurisdiction under section 148. 10. Accordingly, the notice issued under section 148 on 7th April 2022, issue without complying the mandatory requirements prescribed under sections 149(1)(b) and 151(ii) of the Act, cannot be sustained in the eyes of law. 11. Our aforesaid view is supported by the principles laid down in following judgments: 1. Hon'ble Supreme Court in the case of Union of India & Others Vs. Ashish Aggarwal (2022) ....