Kerala High Court: Assessing Authority Cannot Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment [Income Tax]

The Kerala High Court in the case Kings Infra Ventures Ltd. v. The Assistant Commissioner of Income Tax observed and has stated that while determining the assessment of relevant years assessing authority cannot determine the assessment for earlier years without enquiry.

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The Division bench comprising of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. was hearing the present matter.

The bench in the case observed that, 'This court fails to understand how the assessing authority, as well as the First Appellate Authority, while considering assessment proceedings for the assessment years 2011-12 could have embarked upon an enquiry with regard to the nature and extent of business that was carried on by the assessee during the assessment years from 1999-2000 to 2009-10.'