2010 (11) TMI 800 - HC - Income Tax

Reopening of assessment u/s 148 - Held that - No merit in these appeals filed by the Revenue because without making regular assessment under Section 143(3), the Department reopened the assessment under Section 148 merely because income returned by the assessee is less than the income asssessable under Section 44AE. The first appellate authority held that Section 44AE has no application unless the Department proves that the assessee s accounts are not correct and complete. This order of the CIT (Appeals) is confirmed by the Tribunal. Against revenue.

Summary

The High Court Kerala dismissed the appeals filed by the Revenue as the Department reopened assessment under Section 148 without making a regular assessment under Section 143(3). The Court upheld the order of the CIT (Appeals) and the Tribunal, stating that Section 44AE does not apply unless the Department proves the assessee's accounts are incomplete or incorrect.