TMI Blog2014 (2) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice, the Assessing Officer does not have jurisdiction to examine and adjudicate the issues raised in the question - Pending proceeding in general and question already pending for adjudication are not the same - the Income-tax Authority assumes jurisdiction to adjudicate the issues that may consist of issues raised in the questions before this Authority - The question cannot be said to be already pending for adjudication before the Income-tax authority unless notice u/s 143(2) is issued before the application is filed - though return of income was filed before filing of the application before the Authority, notice u/s 143(2) was issued after the application was filed – thus, the question cannot be said to be already pending before the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, whether the amounts received/receivable by LSCSL from M/s Bharat Heavy Electricals Limited (BHEL) for offshore supply of Equipments Materials etc. under purchase order No. 429A345 dated 04th November 2009 (Off Shore Supply Contract) for offshore supply of equipment [hereinafter referred to as Ukai Project] is liable to tax in India under the provisions of the Income-tax Act, 1961 ( Act ) and/ or the Agreement for Avoidance of Double Taxation between India and Korea ( India Korea Tax Treaty )? 2. If answer to first question is in the negative, then whether on the facts and circumstances of the case, interest on income-tax refund is liable to tax as per clause 2 of article 12 of India Korea Tax Treaty? 3. The Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mitsubishi Corporation, Japan (AAR No.1309 of 2012) decided on 13th December, 2013 it was submitted that the question can be said to be pending only when notice section 143(2) is issued by the Department. 5. We have considered the rival contentions of the applicant and the Revenue and also considered the facts and rulings/decisions cited in their submissions. 6. When returns are filed under section 139 or in response to a notice under sub-section (1) section 142, they are processed under section 143(1) of the Act. While processing the return under section 143(1) the total income or loss are computed after making the following adjustments i.e. (i) any arithmetical error in return; or (ii) an incorrect claim, if such incorrect claim is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions under section 143(2) and 142(1) of the Act, that this was not so. By issue of notice under section 143(2) only, the Assessing Officer assumes jurisdiction to adjudicate all the questions arising out of the return. In the case of Jagtar Singh Purewal reported in (1995) 213 ITR 512, this Authority considered the issue where though applicant declared amount in question in return, his application for advance ruling was maintainable in as much as no dispute was pending between applicant and department as return had been processed under section 143(1) and refund had been granted and, further, even in return, assessee had raised no dispute regarding assessability of amount but only claimed refund of excess tax paid. It was held that ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act. However, that does not mean the issues raised in the questions filed before this Authority is already pending for adjudication by the Income-tax Authorities. Only when notice u/s 143(2) or 142(1) of the Income-tax Act is issued, the Income-tax Authority assumes jurisdiction to adjudicate the issues that may consist of issues raised in the questions before this Authority. The question cannot be said to be already pending for adjudication before the Income-tax authority unless notice u/s 143(2) is issued before the application is filed. In this case, though return of income was filed before filing of the application before this Authority, notice u/s 143(2) was issued after the application was filed and hence the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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