2013 (12) TMI 256 - SC - Income Tax

Validity of assessment u/s 148 - Held that - The assessee has challenged the reassessment orders in appeal before the Commissioner (Appeals) - The objections of the assessee concerning validity of the notice under Section 148 of the Act if raised in the appeal before the Commissioner shall be examined by the appellate authority in accordance with law uninfluenced by the observations made - Revenue will be entitled to place before the Commissioner (Appeals) all necessary pleas justifying the issuance of notice under Section 148 of the Act - Petition disposed off.

Summary

Issues:
1. Validity of notice under Section 148 of the Income Tax Act challenged by the assessee.
2. Reassessment already conducted despite objections raised by the assessee.
3. Pending appeals before the Commissioner (Appeals) regarding the reassessment orders.

Analysis:
1. The Supreme Court addressed the issue of the validity of the notice issued under Section 148 of the Income Tax Act, 1961, which was challenged by the assessee. Despite objections raised by the assessee, reassessment had already been completed. The Court clarified that the objections regarding the notice's validity, if raised in the appeal before the Commissioner, would be examined independently in accordance with the law. The appellate authority was directed to consider the objections without being influenced by the observations in the impugned order. The Revenue was allowed to present all necessary justifications for issuing the notice under Section 148 of the Act before the Commissioner.

2. The Court noted that in all the cases presented, reassessment had been carried out despite objections raised by the assessee about the validity of the notice under Section 148. The assessee had appealed these reassessment orders before the Commissioner (Appeals), and these appeals were pending. The Court reiterated that the objections regarding the notice's validity should be considered by the appellate authority independently and without being influenced by any previous observations. The Revenue was granted the opportunity to present all essential arguments supporting the issuance of the notice under Section 148 before the Commissioner.

3. In each case, the Supreme Court disposed of the Special Leave Petitions, emphasizing the need for the objections concerning the validity of the notice under Section 148 to be examined independently during the appeals process. Both the senior counsels representing the assessee and the Revenue agreed to this position. The Court's decision aimed to ensure a fair and unbiased assessment of the objections raised by the assessee regarding the notice's validity, separate from the reassessment process already conducted.