COMMISSIONER OF INCOME TAX Vs. BLUE STAR LTD.

JUDGEMENT

(1.) Heard the learned counsel appearing for the appellant - revenue. He has pressed into service the following substantial questions of law :

(2.) The respondent-assessee preferred an Appeal against the order passed by the Assessing Officer under Section 143(3) read with section 147 of the Income Tax Act, 1961 (for short "the said Act"). Before CIT (Appeals), a specific contention was raised that the Assessing Officer issued a notice under Section 148 on 30th March, 2010 whereas he recorded reasons for reopening the assessment on 31st March, 2010. The CIT (A) held that recording of reasons was sine qua non for issuing a notice under Section 148 of the said Act. Therefore, the first Appellate Authority proceeded to set aside the reassessment made by the Assessing Officer. Being aggrieved by the order of the first Appellate Authority, the appellant - revenue preferred an Appeal before the Income Tax Appellate Tribunal, B Branch at Mumbai. Before the Appellate Tribunal on 24th March, 2014 an affidavit was filed by the Assessing Officer in which he contended that though he had dictated reasons on 30th March, 2010, he signed the same on 31st March, 2010. The Appellate Tribunal proceeded to dismiss the Appeal filed by the Appellant - revenue.

(3.) The learned counsel appearing for the appellant relied upon the affidavit dated 24th March, 2014 filed by the Assessing Officer which records that on 30th March, 2010 he dictated the reasons. The affidavit shows that the reasons/grounds were recorded before the notice was issued under Section 148 of the said Act on 30th March, 2010. He submitted that this was sufficient compliance with Sub-Section (2) of Section 148 of the said Act. He would, therefore, submit that the proceedings were not initiated on the basis of the notice dated 30th March, 2010.