October 2022
Reassessment — Notice u/s 148 — Limitation — Law applicable — Effect of amendments with effect from 1st April, 2021 and CBDT Circular dated 11th May, 2022
By K. B. Bhujle, Advocate
46 Ajay Bhandari vs. UOI
[2022] 446 ITR 699 (All.)
A.Y.: 2014-15
Date of order: 17th May, 2022
Ss. 147 and 148 of ITA, 1961
Reassessment — Notice u/s 148 — Limitation — Law applicable — Effect of amendments with effect from 1st April, 2021 and CBDT Circular dated 11th May, 2022For the A.Y. 2014-15 a notice u/s 148 of the Income-tax Act, 1961 was issued on 1st April, 2021. The recorded reasons read as under:
“I have reason to believe that an income to the tune of Rs. 2,63,324 has escaped assessment for the aforesaid year.”
The reassessment order dated 31st March, 2022 was passed u/s 147 r.w.s. 144B of the Act, 1961. The assessee filed writ petition and challenged the notice and the reassessment order.
The Allahabad High Court allowed the writ petition and held as under:
“i) Section 147 of the Income-tax Act, 1961, as it existed till March 31, 2021, empowers the Assessing Officer to assess or reassess or recompute the loss or depreciation allowance or any other allowance, as the case may be, for the assessment year in the case of an assessee if he has reason to believe that income chargeable to tax has escaped assessment, subject to the provisions of sections 148 to 153. A precondition to initiate proceedings under section 147 is the issuance of notice under section 148. Thus, notice under section 148 is jurisdictional notice. Section 149 provides the time limit fo
