2003 (8) TMI 15 - HC - Income Tax

Reassessment - non-application of mind by department - Without assigning any reason whatsoever except filling up the address of the petitioner, the Department has decided to reassess the assessment revenue not disclosing any reason for issuance of notice - Sub-section (2) of section 148 of the Income-tax Act very specifically provides that before issuing any notice under this section, the officer concerned must report his reasonings for doing so - Hence, the impugned notice, which is a classic example of non-application of mind, has to be set aside and the same is set aside

Summary

The High Court of Madras ruled that the Department's decision to reassess an assessment without providing a reason was invalid. The court set aside the notice and gave the Department 15 days to issue a fresh notice with proper reasoning. The writ petition was allowed with no costs.