|The Tax Publishers2021 TaxPub(DT) 0029 (Mad-HC) : (2021) 277 TAXMAN 0598
INCOME TAX ACT, 1961
Section 147 Section 292BB
Provisions of section 292BB would not be applicable to a case where assessee questions issuance of the notice itself, because non-issuance of notice would result in lack of jurisdiction. Therefore, reassessment proceedings initiated without communicating reasons recorded for reopening to assessee were invalid.
Reassessment - Validity - Non-communication of reason recorded for reopening to assessee - AO took plea of section 292BB
Assessee challenged validity of re-assessment framed by AO on the ground that reasons recorded for reopening were not communicated to assessee. AO took plea of section 292BB submitting that assessee did not raise any objection on ground of non-communication of the reasons for reopening and he cooperated in assessment and the same was completed by AO. Held: Assessee had sought for reasons for reopening, which were not furnished in spite of AO having received letter requesting for communication of reasons for reopening. Section 292BB is not a cure when there is total absence of notice. Therefore, provisions of section 292BB would not be applicable to a case where assessee questions the issuance of the notice itself, because non-issuance of notice would result in lack of jurisdiction. Therefore, reassessment proceedings were invalid also when reopening was made, based on the facts, records and documents, which were available on record when original assessment was completed.
Supported by:CIT v. Laxman Das Khandelwal (2019) 417 ITR 325 (SC) : 2019 TaxPub(DT) 5081 (SC) and Jayanthi Natarajan v. Asstt. CIT [W.P. No. 1905 of 2017 dated 14-9-2017] : 2017 TaxPub(DT) 4164 (Mad-HC). Distinguished:State of U.P. v. Sudhir Kumar Singh & Ors. [Civil Appeal No.3498 of 2020, dated 16-10-2020].
FAVOUR : In assessee's favour.
A.Y. : 2006-07
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