2021 (5) TMI 125 - HC - Income Tax

Reopening of assessment u/s 147 - appellant strenuously contended that the notice issued under Section 148 of the Act was never served on the appellant and failure to serve the same within a reasonable period atleast before the completion of assessment, would result in the assessment being void - HELD THAT - Tribunal has remanded the matter back to the Assessing Officer to adjudicate the matter afresh, since, right through, the assessee was contending that there was lack of opportunity and there was violation of principles of natural justice. Thus, we are of the considered view that there is no good ground made out by the assessee to interfere with the order passed by the Tribunal and there is no question of law, much less substantial question of law arising for consideration in this appeal. Accordingly, the appeal fails and it is dismissed.

Summary

Issues:
1. Jurisdiction of notice under Section 148 of the Income Tax Act.
2. Compliance with mandatory conditions under Section 147 for re-assessment proceedings.

Analysis:
1. The appeal was filed challenging the order of the Income Tax Appellate Tribunal regarding the notice issued under Section 148 of the Income Tax Act for the assessment year 2011-12. The appellant questioned the jurisdiction of the Assessing Officer in issuing the notice. The Tribunal remitted the matter back to the Assessing Officer due to lack of opportunity and violation of natural justice principles. The appellant contended that the notice was never served on them, rendering the assessment void. The respondent argued that multiple notices were issued, including one under Section 148, and proceedings were initiated properly. The Tribunal's decision was upheld, dismissing the appeal as no substantial question of law was found.

2. The appellant raised concerns about the re-assessment proceedings and the order's compliance with the mandatory conditions under Section 147. The Tribunal's decision to remand the matter back to the Assessing Officer was based on lack of opportunity and violation of natural justice principles. The appellant did not seriously contest the matter before the Commissioner of Income Tax (Appeals) and raised issues related to natural justice violations. The respondent argued that the appellant did not cooperate in the proceedings, and various notices were issued. The Tribunal's decision to remand the matter for fresh adjudication was supported, emphasizing the importance of providing a fair opportunity and upholding natural justice principles.

In conclusion, the High Court upheld the Tribunal's decision, dismissing the appeal as no substantial question of law was found. The Court emphasized the need for proper initiation of proceedings, compliance with jurisdictional requirements, and adherence to natural justice principles in tax assessment matters. The appellant's contentions regarding lack of notice service and jurisdiction were considered but deemed insufficient to interfere with the Tribunal's order.