| Question And Answer | |
|---|---|
| Subject: | Notice issued u/sec 148 of the Act for A.Y.2017-18 twice |
| Category: | Income-Tax |
| Querist: | S Shah |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Notice, Re assessment |
| Date: | October 4, 2022 |
- Assessment of the assessee for A.Y.2017-18 was re-opened u/s 147 of the Act.
- Notice u/s 148 of the Act was issued on 31.03.2021 for the said A.Y, no compliance were made to the said notice. AO completed to assessment u/sec 147 r.w.s.144 r.w.s 144B by making an addition of the entire cash payment for purchase of immovable property and treating the same as unexplained investments u/s 69 of the Act .
- The assessee preferred an appeal before CIT(A) against the order passed u/sec 147 r.w.s.144 r.w.s 144B.
- The assessee again received notice u/sec 148 for A.Y.2017-18 and order u/s 148A on 29.07.2022 for same addition u/s 69 made earlier. No compliance to the said notice was made.
- The assessee also received notice u/s 142(1) for A.Y.2017-18 and due for compliance.
- Kindly request your Honor to guide further on the said issue.
Thank You
As per the decision of the Hon’ble High Court in the case of Sai Cylinders Private Limited v. ACIT WP No. 3555 of 2021 dated May 05, 2022 while giving effect to the decision of the Hon’ble Supreme Court’s order in the case of Ashish Agarwal held that wherever assessment order has been passed those orders will stand quashed and set aside.
Therefore, the appeal of the assessee before the CIT(A) is infructuous and deserves to be set aside.
With respect to the subsequent notice under the new regime, it is pertinent to note that, there is a ground which is taken before the Hon’ble High Court in in the case of Rakesh Dungarmal Tainwala v. DCIT WP(L) No. 27133 of 2022 (Bom)(HC) where it is contended that, where the assessee has not preferred a Writ Petition, the decision in the case of Ashish Agarwal (Supra) will not apply to the asssessee. Ad-interim relief has been granted by the High Court.
The Assessee is at liberty to participate in the reassessment proceedings under the new regime or file a Writ Petition challenging the applicability of the new regime to the assessee.