Milky Way Consultants Llp, New Delhi vs Ito Ward - 37(1), New Delhi on 16 June, 2023
In the case of PCIT vs. SNG Developers
Ltd. (supra) the Hon'ble High Court concurring the view taken by the Tribunal held that
the jurisdictional mandatory requirement for reopening of assessment u/s. 147 and
issuance of notice u/s 148 of the Act has to be held as not satisfied in a case where
there was clear non application of mind by the Assessing Officer while recording the
reasons to believe that income has escaped assessment. Respectfully following the
same we hold that in the present case the reasons recorded by the Assessing Officer for
reopening of assessment u/s. 147 of the Act do not meet the requirement of law and
hence the same has to held as unsustainable being bad in law. Accordingly ground no.
1 to 4 of assessee are allowed and initiation of reassessment proceedings u/s. 147 of
the Act, notice u/s. 148 of the Act and all consequent orders and proceedings are
quashed.