Assessment order under sec. 143(3) /147

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This query is : Resolved

CA PARUL KHATANA (Querist)

24 December 2019 Dear experts,
the question is about " reasons to believe". notice us 148 was served for income escaping assessment.
ROI was filed against 148 and also reasons to believe were demanded.
reasons to believe are not provided even till this date and assessment order passes.
notice us 143(2) and 142(1) were issued and reply submitted to such notices too.
i want to ask whether the validity of notice us 148 can be challanged for non providing of reasons to believe even if i have made compliance to notices issued.
there is also supreme court guideline to this effect that the a.o. is duty bound to provide reasons to believe within reasonable time.
its urgent. kindly reply.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

25 December 2019 Yes the assessment proceedings u/s 148 can still be challenged. Non providing of reasons to believe despite being asked is clear violation of SC verdict in kelvinator of India case. There are a number of other supporting case laws as well. You can accordingly file appeal.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

25 December 2019 According to SC, it is mandatory to provide reasons to believe and afford an opportunity to assessee to file his objections if any. Then the AO is also required to pass a reasoned order for rejection of assessee's objection to reasons to believe.

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