Assessee filed its return and assessment proceedings under section 147 were initiated by issuing notice under section 148. AO calculated capital gains from the property and assessment was completed accordingly.

On appeal, CIT(A) vide order dated 3 May 2019 annulled the assessment order framed by AO but directed AO to execute remedial action on the legal heir of the assessee under section 148 of the Act.

Tribunal held that in accordance with provisions of section 149(1)(b), notice under section 148 could have been issued by end of AY 2018-19. The said period had already elapsed when the order was passed. Therefore, the direction of CIT(A) to reopen the case was not in accordance with law.  In the result, Tribunal ruled in favour of assessee.

(AY. 2011-12)