Held, that it was well-settled that the law applicable for the relevant assessment year should be seen. Relied on Shree Choudhary Transport Co. v. ITO(2020) 426 ITR 289(SC) During the remand proceedings, the Assessing Officer, after examining the passport, had observed that for the impugned assessment year, the assessee was a resident. However, the Revenue authorities had considered the assessee’s residential status on the date of issuance of notice under section 148 to be non-resident, which was not correct, and that the entire proceedings in the status of a non-resident is not sustainable in the eyes of law hence quashed.(AY.2016-17)
Rahul Agarwal v. Dy. CIT (IT) (2024)114 ITR 67 (SN)(Bang)(Trib)
S. 147 : Reassessment-Residential status-Fictitious loss-Reassessment notice on the assumption as resident-Reopening Based on receipt of information of escapement of income-Assuming as non-resident-Proceedings in status of Non-resident is bad in law-In Income-tax matters, the law to be applied is the law in force for the relevant assessment year unless otherwise stated or implied. [S. 133A, 143(3) 144C(15(b)(ii) 148]
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