The Tax Publishers2021 TaxPub(DT) 0720 (Guj-HC) : (2021) 278 TAXMAN 0322

INCOME TAX ACT, 1961

Section 148

Section 148 notice issued on borrowed satisfaction of investigation wing without independent application of mind by AO was invalid.

Reassessment - Notice under section 148 - Issuance of notice on borrowed satisfaction without independent application of mind by AO -

AO received information from investigation wing as to assessee having made unaccounted cash payment towards purchase of land. Accordingly, AO issued notice under section 148 so as to reopen assessment. Assessee challenged the notice by way of writ petition. Held: AO had accepted entire transaction under scrutiny assessment under section 143(3). Upon receipt of the information/material received from other sources, AO was required to consider material on record in case of assessee by applying his mind and thereafter was required to form an independent opinion on the basis of the material on record that the information has bearing on the income of the assessee and such income has escaped assessment. Without forming such an opinion, solely and mechanically relying upon the information received from other sources, there could not be any reassessment. Accordingly, section 148 notice was set aside.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



IN THE GUJARAT HIGH COURT

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