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2014 (6) TMI 568 - AT - Income TaxValidity of reassessment u/s 147/148 of the Act – Failure to issue notice u/s 143(2)(ii) within period of limitation - Held that:- The assessee had filed the return for AY 1998-99 in December, 1998, for AY 1999-2000 in March, 2000 and for AY 2001-02 in January, 2001 – as it has already been decided in the earlier assessment year, the agricultural income shown by the assessee has been accepted by the Revenue in some years in 143(1) and in some years in 143(3) - the income disclosed by the assessee is Rs.2,50,000/- in AY 1998-99, Rs.3,00,000/- in AY 1999-2000 and Rs.4,50,000/- in AY 2000- 01 - the income disclosed is higher than the income accepted in the preceding two years - if the AO had any doubt about the correctness of the agricultural income disclosed and he wanted to verify the same, he ought to have issued notice u/s 143(2)(ii) within the time limit permissible under the proviso to above sub-section - Having failed to issue the notice u/s 143(2)(ii) with the period of limitation, Section 148 cannot be invoked to get the extended time limit for verification of the correctness of the income returned – thus, the issue of notice u/s 148 was not valid – Decided in favour of Assessee. Estimation of the agricultural income – Held that:- The assessee has not maintained any regular books of account with regard to agricultural income - after several years, the AO was not justified in estimating the agricultural at Rs.1,00,000/- in AY 2001-02 and Rs.59,553/- in AY 2003-04. - the assessee has enclosed the copy of the letter written by the assessee to Tehsildar for issuing certificate of agricultural income - it would meet the ends of justice if the agricultural income of the assessee is estimated at Rs.3,50,000/- in both the years – Decided partly in favour of Assessee.
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