AMIT BAJAJ ADVOCATE

Mumbai ITAT has held in a very important following case that when only intimation u/s 143(1) is being issued and no assessment is framed u/s 143(3) even then reaaseessment u/s 147/148 shall be invalid in the absesnce of new material.

In this case The AO accepted the ROI filed by the assessee u/s 143(1). He thereafter issued a notice u/s 148 on the ground that the assessee had claimed a deduction for ERP software and that although only 20% of the said expenses was debited to the P&L A/c, the entire amount was claimed as a deduction. The assessee claimed that the reopening was not valid as there was no “new material” in the AO’s possession.