2024 (7) TMI 1435 - HC - Income Tax

Validity of reopening of assessment - Non providing the reasons to assessee though requested - respondents, submits that the petitioner did not request for reasons through the ITBA portal, therefore, the request for reasons did not come to the notice of the AO - HELD THAT - As prior to the amended regime being put it place with regard to re-assessment proceedings, by virtue of the order of the Hon'ble Supreme Court in GKN Driveshafts 2002 (11) TMI 7 - SUPREME COURT the Income-tax Department was under an obligation to provide reasons if requested for by the assessee concerned after filing the return of income pursuant to receiving notice under Section 148. In the case at hand, admittedly, the petitioner filed the return of income and, thereafter, requested for reasons for reopening the assessment by e-mail of 21.04.2021. On examining the impugned assessment order, it is evident that the e-mail address from which the petitioner requested for reasons for reopening the assessment is the same as the registered e-mail ID of the assessee. In these circumstances, the failure to provide reasons for reopening the assessment is fatal. Therefore, WP is allowed and the impugned assessment order is quashed by leaving it open to the respondents to initiate de novo proceedings in accordance with law.

Summary

The petitioner challenged an assessment order issued on best judgment basis. The petitioner had filed her original income return for Assessment Year 2017-2018. Despite requesting reasons for reopening the assessment, they were not provided. The High Court quashed the assessment order and allowed the respondents to initiate new proceedings.