The assessee filed writ petition challenging the validity of two notices dated 23/03/2015 and 18/01/2016 issued u/s. 148 of the Act by the AO for the A. Y. 2008-09. During the pendency of the writ petition, the AO passed the reassessment order making additions. However, as per directions of interim order passed by the High Court, AO did not give effect to the order.
The Delhi High Court allowed the writ petition. The HC held that the Revenue did not pursue the notice dated 23/03/2015 issued to the assessee u/s. 148 of the Act. The notice dated 18/01/2016 did not state anywhere that it was in continuation of the earlier notice dated 23/03/2015. There was no noting even on the file made by the AO that while issuing the notice he was proposing to continue the proceedings that already commenced with the notice dated 23/03/2015. The entire proceedings u/s. 148 stood vitiated since even according to the AO, he initiated proceedings on 18/01/2016 on which date such initiation was clearly time barred. The HC further observed that the fresh initiation did not have the approval of the Additional Commissioner, as required by law and was therefore bad in law. Consequent to these legal infirmities all proceedings including the assessment order dated 30/03/2016 was to be set aside.