The High Court held that once the reply filed by the assessee pursuant to the notice had been rejected without examining the third proviso to section 12A(2) of the Income-tax Act, 1961, relegating the assessee to the alternative remedy would not be appropriate, and set aside the show-cause notice under section 148A(b), the consequent order under section 148A(d) and the notice under section 147 being contrary to the third proviso to section 12A(2). On a petition for special leave to appeal to the Supreme Court(AY.2015-16)
Asst. CIT (E) v. Prem Chand Markanda Sd College For Women (2024)460 ITR 495 /297 Taxman 64 (SC) Editorial : Refer, Prem Chand Markanda Sd College for Women v. ACIT (E) (2023) 455 ITR 329/334 CTR 582 (P& H)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Charitable purpose-Registration-Reassessment proceedings for earlier years cannot be initiated on ground of non-registration-SLP of Revenue dismissed. [S.11, 12 12A(2), 147, 148, 148A(b), Art. 136]