ORDER OF ASSESSMENT–Reopening of original section 143(1) assessment and completion under section 144.
Ratio :
Where assessment was reopened and completed under section 144 one day after completion of assessment under section 143(1) and yet vital point was not considered, the same is set aside.
Held :
Neither the assessing officer nor the Commissioner of Income Tax (Appeals) appears to have made an enquiry as to the penalty or punishment imposed upon the assessee for being in possession of a sum of Rs. 1,85,000, which was seized from him by the Enforcement Directorate, apparently, for contravention of the relevant provisions of law. It is not ascertained whether the assessee has admitted or refuted the charge regarding his violation of the law relating to foreign exchange regulations. Since the vital points on which enquiries were either not conducted or not brought to conclusive end, it is difficult to determine the issues on these half-baked facts. Therefore, in the interest of justice to both the sides, the orders of the authorities below should be set aside with the directions to the Income Tax Officer to take note of what has been observed supra and proceed afresh to make de novo assessment in accordance with law after affording reasonable opportunity of being heard to the assessee on all the points in dispute.
Application :
Also to current assessment years.
Income Tax Act 1961 s.143
Income Tax Act 1961 s.144
