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2013 (10) TMI 286 - HC - Income TaxWithdrawal of reasons recorded for issuance of Notice u/s 148 Held that - Submission made by Revenue that Income Tax Officer will withdraw the impugned reasons recorded, which are the basis for issuing the said notice and record fresh reasons incorporating the correct factual position and then proceed in the matter in accordance with law - In view of this submission, the petition is disposed of on the understanding that the show-cause notice dated 5.10.2011 does not survive and is effaced from the record since reasons recorded on the basis of which the same was issued have been withdrawn by the Income Tax Officer with liberty to record fresh reasons and proceed in the matter, in accordance with law.
Issues:
Challenge to show-cause notice under Section 148 of the Income Tax Act, 1961 based on delayed valuation report. Analysis: The petition contested a show-cause notice issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961 for the assessment year 2007-08. The notice was based on a delayed valuation report regarding the investment made by the assessee in a hotel construction project. The petitioner argued that relying on a valuation report obtained after the assessment was completed is not permissible. The department, however, claimed that the valuation report was available to the Assessing Officer as it was requested under Section 142A of the Act. The department cited an unreported decision of the Delhi High Court to support their stance. The court noted that the reasons recorded for the notice did not mention the availability of the valuation report at the time of assessment, leading to the conclusion that the petition should be allowed. The department conceded that if the valuation report was indeed obtained after the assessment, the reasons for the notice should be withdrawn. Consequently, the court disposed of the petition with the understanding that the show-cause notice dated 5.10.2011 was no longer valid, as the Income Tax Officer withdrew the original reasons and was permitted to formulate new grounds in line with the correct factual position. The court clarified that this decision did not imply a final judgment on the merits of the case, leaving all questions open for future consideration.
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