The Hon’ble High Court held that the AO issued the impugned notice under section 148 beyond the period of four years to reopen the assessment completed under section 143(3) of the Act without making any allegation of suppression of income or non disclosure of income from unrecorded sales. Hence, there is no failure on the part of the assessee which could give reasons to believe to AO to reopen the assessment. Thus, the impugned notice is bad in law and the same is set aside.(AY. 1999-2000, 2000-01)
Susheel Kumar Shankarlal v. ITO (2024) 301 Taxman 61 (MP)(HC)
S.147: Reassessment-After the expiry of four years-No failure to disclose material facts-G.P rate of unrecorded transactions were recorded at 7.5% as against G.P rate of 12.5 % in respected recorded transactions-Reassessment notice and order disposing the objection is quashed. [S.143(3), 148, Art. 226]