2024 (4) TMI 889 - HC - Income Tax

Reopening of assessment u/s 147 - second re-assessment notice u/s 148A - scope of new regime of reopening of assessment after introduction of provisions of section 148/148A - ​​​​petitioner participated in the initial re-assessment proceedings, thus consequently, re-assessment orde was passed by the Assessing Authority - Without any challenge rais ed by the petitioner to the reassessment order and that order not set aside by any authority or Court, the petitioner has been visited with second re-assessment notice for A.Y. 2017-18 and Assessing Authority has invoked Section 148-A of the Act - HELD THAT - As it could not be disputed that neither the petitioner challenged that reassessment order nor that order was revised by the Commissioner nor there was any declaration made by the Supreme Court in rem to annul or in all assessment orders other than those that may have been specifically under challenge in the proceedings before the Supreme Court in Ashish Agarwal 2022 (5) TMI 240 - SUPREME COURT Since in the present case, re-assessment order had already been passed on 28.03.2022, there was no proceeding pending as may have been influenced or affected or governed by the subsequent order of Supreme Court dated 04.05.2022 in in Ashish Agarwal case. It is fundamental, there may exist one assessment order for an assessee for one assessment year. In absence of any declaration of law to annul or set aside the pre-existing re-assessment order dated 28.03.2022, we find no jurisdiction existing with the Assessing Authority to again re-issue the impugned notice. The proceedings are wholly without jurisdiction and a nullity. Accordingly, the re-assessment proceedings initiated in the case of the petitioner for A.Y. 2017-18 under Section 147 read with Section 148 of the Act, vide re-assessment notice dated 30.07.2022 is quashed - WP allowed.

Summary

Issues involved:
Challenge to re-assessment proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961 for A.Y. 2017-18.

Summary:

1. The petitioner was originally assessed to tax under Section 143(3) for A.Y. 2017-18. Subsequently, a re-assessment notice was issued under Section 148, and a re-assessment order was passed. The petitioner did not challenge this order, and it attained finality.

2. Despite the absence of any challenge to the previous re-assessment order, a second re-assessment notice was issued invoking Section 148-A of the Act. The petitioner challenged this notice.

3. The revenue authorities argued that a previous notice was digitally signed after the introduction of Section 148-A, rendering the proceedings leading to the re-assessment order vitiated. However, since the previous order was not challenged or revised, and there was no Supreme Court declaration annulling all assessment orders, the subsequent notice was deemed invalid.

4. The Court held that there should be only one assessment order for an assessee for a particular assessment year unless specifically annulled. As the previous re-assessment order was not set aside, the Assessing Authority had no jurisdiction to issue the impugned notice. Therefore, the re-assessment proceedings were declared null and void.

5. Consequently, the re-assessment proceedings initiated for A.Y. 2017-18 under Section 147 and Section 148 were quashed, and the writ petition was allowed with no costs.