Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 570 - ITAT LUCKNOWReopening of assessment u/s 147 r.w 148 – Reason to believe – Whether it can be said that an income has escaped assessment on the date of issue of notice u/s 148 of the Act i.e. on 30/03/2006 - Notice u/s 148 of the Act was issued by the AO on 30/03/2006 and it was duly served on the assessee on 30/03/2006 and the assessee has filed its return of income on 31/03/2006 – Held that:- The basis of the decision of the authorities below is that since the assessee has not filed any return of income by the due date u/s 139 (1), income has escaped assessment - if the assessee does not file any return of income on or before the due date as prescribed u/s 139(1) of the Act, then the AO may issue notice to the assessee for filing return of income u/s 142(1) of the Act - when an assessee does not file its return of income within the time prescribed under sub section (1) of section 139 of the Act, the AO can ask the assessee to furnish the return of income - Similarly as per the provisions of section 147, if the AO has reason to believe that the income chargeable to tax has escaped assessment, he can assess or reassess such income – the AO has to record his reasons for belief and then issue notice u/s 148 - till the time available to the assessee for filing return u/s 139(4) has not expired, it cannot be said that any income has escaped assessment - such time has not expired on 30/03/2006 when the AO issued notice to the assessee u/s 148 and therefore, the action of the AO in issuing notice u/s 148 is not valid because no income has escaped assessment till that date - the proceedings initiated by AO by issuing notice u/s 148 is not valid and the assessment framed u/s 143(3)/148 is to be set aside – Decided in favour of asseesee.
|