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TMI Blog2024 (9) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. In view of that matter, the reassessment order passed without issuing notice u/s 148 would be liable to be treated as bad in law and deserved to be quashed. We hold the assessment order passed under section 147 r.w.s. 148 without jurisdiction and as such, it is quashed as void ab initio. Assessee appeal allowed. - DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER For the Appellant :Sh. Vipul Arora, C. A. For the Respondent :Sh. Digvijai Kumar Chaudhary, Sr. DR ORDER Per Dr. M. L. Meena, AM: The captioned appeal has been filed by the assessee against the order passed by the ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 13.02.2024 which is arising out of the Assessment Order dated 29.03.2022 u/s 147 r.w.s. 144 of the Income Tax Act, 1961 passed by the Income Tax Officer, Ward-1(1), Amritsar in respect of AY: 2017-18. 2. The assessee has raised the following grounds of appeal: 1. That the Worthy Commissioner of Income Tax (Appeals) has', in view of the facts and circumstance of the case , grossly erred in confirming addition of Rs.4786000/= out of total addition of Rs. 5345000/= made by the Learned AO on account of unexplained mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [1998] 229 ITR 383/157 CTR 249 (SC). The Apex court held as under: The Supreme Court held that section 254 is couched in the widest possible terms and there is nothing in the provision which stops the Tribunal from entertaining a claim, which has not been raised before the lower authorities. The purpose of the assessment proceedings is to determine the correct amount of taxable income and there is no reason that an assessee should be prevented from raising a ground before the Tribunal, if an income, which is not chargeable to tax as per law has been assessed by the AO. The only caveat is that the facts pertaining to such a ground must be on record. Followed Jute Corporation of India Ltd. v. CIT (1981) 187 ITR688 (SC) (AY. 1978-79). (Transfer case 4 of 1988 dt. 4-12-1996) Editorial : CIT v. Sinhgad Technical Education Society (2017) 397 ITR 344/156 DTR 161/297 CTR 441/250 Taxman 225 (SC). The view has been followed by the Bombay High Court in the case of CIT v. Pruthvi Brokers Shareholders (2012) 349 ITR 336 (Bom)(HC). In the case of Ultratech Cement Ltd. v. ACIT (2017) 408 ITR 500 (Bom) (HC) it was held that where the necessary evidence pertaining to the additional ground w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order dated 29-03-2022 passed u/s. 147 r.w.s. 144 is without jurisdiction and illegal and bad in law and the same is liable to be quashed. 4. After the completion of the assessment vide order dated 29-03-2022, a notice was issued by the AO vide letter dated 29.05.2022 issued by the Income Tax Officer, Ward 1(1), Amritsar vide DIN No. ITBA/COM/F/17/2022-23/1043238170(l),directing that the notice u/s. 148 dated 25.06.2021 issued vide DIN No. ITBA/AST/S/148/2021- 22/1033675240(1) was to be treated as notice u/s. 148(l)(b) of the new provisions in view of the Hon'ble Supreme Court order dated 04.05.2022 in the case of Union of India vs. Ashish Aggarwal (2022 SCC online SC 543) (Page 2-3 of the Paper Book). The Order under Section 148A(d) of Income Tax Act, 1961 was passed on 15.07.2022. Another Notice under Section 148 post Hon'ble Supreme Court Order was issued on 18.07.2022 and the Proceeding Limitation date of the same was 31.03.2024 i.e. after the expiry of twelve months from the end of the financial year in which the notice under section 148 was served as per Section 153(2) of the Income Tax Act, 1961. The assessee filed the reply on 09.05.2023 against the SCN issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 148 of the unamended Act from 1-4- 2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed here in above holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and ail rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available. 11. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 1 -4-2021 issued under section 148 of the Act are set aside (Sic) and shall be governed by the present order and shall stand modified to the aforesaid extent. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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