The Pr. Commissioner of Income-tax, Gurgaon v. Prahalad Singh
|The Pr. Commissioner of Income-tax, Gurgaon
|HIGH COURT OF PUNJAB & HARYANA
|Date of Order
|reassessment proceedings • escaped assessment • validity of notice • capital asset • long-term capital gain • recording of reasons
|AJAY TEWARI, J. 1 This appeal has been filed under Section 260A of the Income Tax Act, 1961 for brevity 'the Act' against the order dated 11.05.2018 passed by the Income Tax Appellate Tribunal, New Delhi, whereby appeal filed by the assessee was allowed. 2 Brief facts of the case are that the assessee had offered some income for tax. The assessment was complete under Section 143(1) of the Act but subsequently notice under section 148 was given. What weighed with the Tribunal was that reasons recorded under Section 147 of the Act to reach the belief that income and escaped assessment was unsigned and undated and consequently, the Tribunal set aside the proceedings on this ground. The mere fact that reasons exist on the file cannot sanctify them and the only way to ascertain whether the requirements under Section 147 of the Act have been met out would be at the very least that the assessing officer sign the same. The action under Section 147 of the Act is quasi-judicial action and if it is permitted that such action can be done as anonymously, it would have very serious consequences in other cases also. If the Court accepts such pieces of paper who can tomorrow stop an assessee from substituting a signed paper with another unsigned paper 6 Moreover the reasons are undated, hence do not establish that they were recorded prior to issuance of notice.