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It is mandatory to issue notice U/S 143(2) (of Income Tax Act, 1961) to complete reassessment U/S 148 (of Income Tax Act, 1961).
It is mandatory to issue notice U/S 143(2) (of Income Tax Act, 1961) to complete reassessment U/S 148 (of Inc…
Assessing Officer completed assessment of partnership firm U/S143(3) (of Income Tax Act, 1961) & determined its total income at Rs.69,52,470. CIT(A) reliefed firm by Rs.61,78,960. AO reassessed total income at Rs.7,73,510 invoking section 148 (of Income Tax Act, 1961) on grounds that assessee had paid excess remnuration & didn't deposited TDS on time. ITAT quashed reassessment orders stating that AO can't invoke section 148 (of Income Tax Act, 1961) without issuing a notice to assessee U/S 143(2) (of Income Tax Act, 1961). Hence, appeal dismissed.-501717
1. Asssessee is the partnership firm.
2. Assessing Officer completed firms assessment under section 143(3) (of Income Tax Act, 1961) and determined its total income at Rs. 69,52,470. 3. CIT(A) reliefed assessee by Rs. 61,78,960.
3. AO reassessed assessee's income invoking section 148 (of Income Tax Act, 1961) on the grounds that assessee paid remnuration in excess to its partners and didn't deposited TDS on time.
4. Assessee contended before CIT(A) that AO didn't served notice under section 143 (of Income Tax Act, 1961) before reassessing income under section 148 (of Income Tax Act, 1961).
5. CIT(A) agreed with assessee's contention and quashed reassessment orders.
6. HELD- ITAT sustained orders of CIT(A).[In favour of assessee]
Case Reference - A.C.I.T Vs. M/s. Jairam Distributors.
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