The petitioner was one of the partners in the partnership firm subsequently converted into proprietary firm of the petitioner. The firm had been dissolved w.e.f. 31-03-2016 and was not in operation from 01-04-2016. The AO issued notice u/s 148A(a) in the name of the dissolved the partnership form for the Asstt.Year: 2019-20, but the petitioner did not reply. The AO subsequently issued notice u/s 148A(b) on the basis of Annual Information received by the insight portal under the category “NMS Category” as per RMS CYCLE-2 revealing that the said firm has withdrawn certain amount from the bank. Without considering the contention of the petitioner, the AO proceeded to issue notice u/s 148 on dissolved firm and passed the order u/s 148A (d).On Writ, the Hon’ble Court observed the undisputed facts about the dissolution of the firm and the issuance of notice in the name of dissolved firm and held the notice u/s 148A(b) as well as the order u/s 148A(d) was to be quashed. Referred, Pr. CIT v. Maruti Suzuki India Ltd. (2019) 107 taxmann.com 375/265 Taxman 515/416 ITR 613 (SC)(AY. 2019-20)
Nathalal Hemabhai Patel v. ITO (2024) 301 Taxman 302 (Guj)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Dissolution of firm- AO issued notice u/s 148A in the name of assessee firm on 09-02-2023 which was dissolved w.e.f. 31-03-2016-Notice u/s 148 and subsequent order u/s 148A (d) were to be quashed and set aside. [S. 148, 148A(b), 1488A(d), Art. 226]