| Question And Answer | |
|---|---|
| Subject: | Reassessment u/sec. 147 |
| Category: | Income-Tax |
| Querist: | Prerna bora |
| Answered by: | Research Team |
| Tags: | ids, notce, Reassessment, Reassessment notice |
| Date: | November 18, 2021 |
Assessee firm Made a declaration under IDS 2016 disclosing regular income for AY 2016-17. However, could not make payment 3rd installment. On the basis of invalid declaration of IDS , 147 notice for AY 2016-17 was issued and assessment was completed by considering the income declared under IDS -2016. Assessee filed an appeal against the said order and since appeal was pending , opted for VSVS and complied with all conditions and also received form 5.
Again notice u/sec 147 is issued on 31.03.2020 for AY 2017-18 on the ground of invalid IDS declaration.
Whether action of AO is justified by taxing same income for AY 2016-17 and 2017-18.
What is remedy for this situation.
Please guide .
The assessee has to file the return under protest and ask for recorded reasons . After getting the recorded reasons the assessee may have to file an objection for the recorded reasons . Follow the law and procedure laid down by GKN Driveshafts ( India ) Ltd v. ITO ( 2003 ) 259 ITR 18 ( SC) , Allana Cold Storage Ltd v ITO ( 2006 ) 287 ITR 1 ( Bom) ( HC ), Asian Paint Ltd v .Dy .CIT ( 2009 ) 296 ITR 90 ( Bom ) ( HC) . It is well accepted principle of law that same income cannot be added twice . ITO v. Bachual Kapoor ( 1966) 60 ITR 74 ( SC) , Laxmipat Singhania v .CIT ( 1989 ) 71 ITR 291 ( SC). Merely because of invalid IDS declaration reassessment notice cannot be issued . After receiving the order disposing the recorded reasons the assessee can file writ before the High Court