Law:

Section:

Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 2006-07 Where petitioners were called upon to file objection to notice under section 148 proposing to reopen assessment on ground that a sum of Rs. 73,219 had 'escaped assessment', revenue could not shift its stand and pass an order on ground of 'concealment of investment'; further where petitioner had disclosed its income fully and truly and return was accepted, notice under section 148 could not be issued on ground that valuation report was received subsequent to passing of order [In favour of assessee] Original assessment of the assessee was made under section 143(3). Later the reassessment notice was issued and the recorded reasons stated that sum of Rs. 73,219 had "escaped income" for the said assessment year. Thereafter, notices under sections 142(1) and 143(2) were issued. The petitioners filed the written objections to the recorded reasons. After the objections were filed the matter was considered and order was passed by the ITO holding that there was "concealment of investment of Rs. 73,219" and the "case fell under the ambit of section 148". It had been recorded in the said order that the petitioner did not produce the valuation report before the valuation cell. Held that, the ITO had held that the petitioner did not produce report before the valuation cell. The ITO had ignored the provisions contained in section 142A which postulate that the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him. Therefore, the assessee was under no obligation to file a report before the Valuation Officer. During the assessment the petitioner had filed a valuation report. Further, relevant documents were examined and while passing the order under section 143(3) the returned figure was accepted. As the petitioner had disclosed its income fully and truly and the return was accepted, notice under section 148 could not be issued on the ground that the valuation report was received subsequent to the passing of the order. Thus, the notice under section 148 was not valid. R.N. Dutta, Mrs. S. Roy Choudhury and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492